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Gold and Oil Markets Report – 21 May 2018

A guest post written by DAR Wong and Chong HC

Crude Oil

WTI Crude prices floated above USD71 /barrel last week together with Brent Crude. Conflict between European Union and US Governments on restoration of Iran may create another possibility of trade war since the exemption of US import tariff in European goods will end in May. Most market analysts predict Crude prices will reach above USD80 /barrel before year-end. This week, we forecast the market will thread high between USD69 – USD71 /barrel but piercing in either headway will lead a new directional trend.

Gold

Gold prices fell below USD1305 /oz support and reached USD1285 /oz bottom last week. Market has been oversold as panic demand rushes into greenback. This week, we forecast the yellow metal will be short-covered while the range is confined to USD1285 – USD1305 /oz region. We reckon the trend has to break beyond this constriction before the new directional headway can be gauged.

Silver

Silver prices are holding well above USD16.20 /oz despite Gold are falling. This week, the market may make small advancement by entailing recovery in Gold prices. View of overall range is almost unchanged from USD16.20 – USD16.80 /oz amid consolidation. For the time being, we are not foreseeing the jump in Silver prices above USD17.00 /oz as the Gold/Silver ratio is not prepared to make big fall yet.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher after roller over seasons and also due the weaker ringgit and low activity in Ramadan month. The August contract closed at RM2449 /MT on Friday amid lower open-interest. This week, we foresee the market might slip lower and move back to consolidation. There is a potential support at RM2400 /MT area and ne buying interest aftermath, may try the target at RM2500 /MT level.

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 26 years of trading and hedging experiences while HC trades for 7 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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