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Gold and Oil Markets Report – 21 July 2014

A guest post written by DAR Wong and Chong HC

The Gold prices set a roller coaster trend last week and posted a difficult trend to handle. It dropped from 1340.00 tops from early last week after FED Yellen reassured of low benchmarks rates. Yellow metal climbed from 1292.00 bottoms on Thursday after the Ukraine tension rose amid shot down of Malaysian airliner. Crude prices also recovered from 99.00 bottoms to 103.00 highs before weekend as political dispute heated among Russia pro-government forces and separatists from Ukraine.

Crude Oil

WTI Crude prices reversed up sharply from 99.0 bottoms to 103.90 highs last week as fear of buying hedge activities surged in market. This week, we reckon the trend will be resisted at 104.00 levels for time being and trade sideways down to 101.50 supports. However, beware of piercing above the aforementioned range as continual eruption of geo-political dispute in Ukraine – Russia territories and Gulf countries might spur new demand of Crude assets. Breaking above 104.00 resistances may attempt 105.50 regions in case of new fundamental fears.

Gold

Gold prices have been behaving very uncertain and open to either direction in coming week. Technically, we foresee the continual strength in Dow Jones markets might put the yellow metal to test 1285.00 supports before bargain-hunting comes in. The market is temporary resisted at 1325.00 levels but piecing above here will lead new bullish sentiment higher back to 1340.00 regions. Stay cautious of potential range in 1285.00 – 1320.00 regions for a breakout in coming week.

Silver

Silver prices took a dip but supported at 20.650 regions last week. Technically, the market is resisted at 21.500 levels and we foresee the range will be constricted in the range 20.600 – 21.500 in coming week. There is no firm forecast of the directional trend but market will depend on fundamental changes to be pulled out of the range. Theoretically, we reckon the strong sentiment in Dow Jones markets and uncertainty in Ukraine tension are two main source of factors affecting the market.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher on Friday due to short-covering for profits. Global sentiment on commodities also traded higher after decline of equity was triggered by fear in Ukraine war tension. The October contract settled at 2308 with approximately 36,000 contracts. This week, the market may rebound from 2300 supports as we foresee trend may recover at 2350 areas. However, driving down at 2250 supports may post a danger to free fall to 2300 bottoms.

Dar Wong

This post is contributed by OPF Guest Bloggers, DAR Wong and Chong HC

DAR Wong and Chong HC are the market strategists in APSRI on CPO markets. DAR has 24 years of trading and hedging experiences while HC trades for 6 years and now coaches institutional customers. They can be reached at www.traderpromaster.com

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DISCLAIMER: This post is written for general information only. The author, publisher and/or any third party involved in the distribution of this work assume no legal responsibilities and shall have no liability whatsoever for any direct or consequential losses, costs or expenses arising from the use of the information contained herein.

 






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