Gold and Oil Markets Report – 22 December 2014
Last Tuesday, Gold swung up after Central Bank of Russia raised the benchmark rates to 17.0 percent for defending receding Ruble. FED Yellen spoke after mid week in FOMC meeting of assuring low interest at least for next few couple of meetings to prevent stock clump. DJIA recovered more than 50 percent range from recent falls and pulled up global equity markets. Crude prices remain weak below 60.00 and might continue to threaten oil exporting countries though OPEC nations have remained silent on the oil slump this round.
WTI Crude reached 5-1/2 year low at 53.60 levels last week. Market is still bearish though we reckon some buying back actions are expected before end of December. This week, we foresee strong resistance will emerge at 60.00 – 65.00 but the market needs to stand above 60.00 levels in order to initiate more short-covering in January. Otherwise, going below 53.00 supports is a danger to see a possibility to dip down below 50.00 in near future.
Gold prices might be heading for another slump in January if Crude fails to recover above USD60.00 levels towards the end of December. Technically, we still foresee strong resistance acting at 1220.00 regions in case of bull trend. This week, we reckon the trend may trade sideways in mixed sentiment as traders retire for holiday seasons. Support will emerge at 1180.00 levels in case of drawdown.
Silver prices are trying to poise at 16.000 regions as some selling pressure may emerge. The trend is likely to meet selling pressure at 16.000 – 16.500 regions in case of rises. If the yellow metal falls, Silver will entail and test 15.500 ground again. However, thin volume is expected in holiday seasons and the penetration below 15.500 will reach down to 14.800 as our next support regions.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives made a rollover to March active month last week. The March delivery closed at 2153 on Friday amid some short-coverings in market. This week, technical outlook reveals resistance at 2200 regions while support will form tight range at 2100 levels. Market may trade either way but breaking beyond the extreme is an indication to move into new direction.
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
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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