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Gold and Oil Markets Report – 22 August 2016

A guest post written by DAR Wong and Chong HC

Gold and Silver traded in resilient demand but still capped under weekly resistances last week. Dollar Index stood firm above 94.00 levels and will continue to act as catalyst to oppose commodity prices. Russia urges the oil producers to cut supply while OPREC countries also voice concern to lift the Crude prices higher, following weekly cut down in U.S., inventories. Investors remain cautious after U.S. FOMC released minutes last week for favoring rate hike before year-end.

Crude Oil

WTI Crude prices have seen a strong recovery throughout whole of last week. However, market topped off 49.00 regions amid profit-taking and may be stagnant in coming week. Investors are observing the fundamentals from OPEC countries and majority commodity trends to gauge oil direction. This week, range could trade lower inside 45.00 – 50.00 regions.

Gold

Gold prices traded narrowly from 1330.00 – 1360.00 regions last week. Market has been in firm demand but fails to pierce above 1360.00 for new rally as Dollar Index holds off 94.00 levels. This week. We foresee the trend may test 1330.00 for final time before reversing into rally. However, beware of breaking below 1330.00 support as this might lead to 1310.00 as our second supports.

Silver

Silver prices dipped on Friday after standing firm for whole week. Technically, we forecast the trend may sink lower to test 18.500 supports this week before turning up. Topside resistance is temporary acting at 20.000 Focus in finding a long entry on drawdown correction as the trend for metals are still optimistic on long-term projection.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed in sideways trend due to market uncertainty and under the influence of stronger Ringgit. The newly active month in November contract closed at 2580 with open interest reduced. This week, we foresee the market might do a correction downward to 2450 region while the resistance capped at 2670 region.

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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