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Gold and Oil Markets Report – 22 February 2016

A guest post written by DAR Wong and Chong HC

The global sentiment on Crude recovery remains uncertain as the NYMEX Sweet Crude Futures on March delivery is going to expire on coming Monday. It closed below USD30.00 /barrel on Friday while traders begin to watch the April performance on next week. Russia and Saudi have agreed to freeze the production and hope to reverse Crude prices upward, despite Iran insists in growing production. Gold prices edged sideways throughout the week with no new directional trend. USDX has been trading steadily from 95.00 – 97.00 regions while holding the commodity from falling further.

Crude Oil

WTI Crude prices still lingered at USD30.00 /barrel last week due to weak demand. This week, it will be a challenge to see if it can stay above this same benchmark for the whole week before going up in near future. From our outlook, range is more likely to trade from 28.00 – 34.00 regions but there is no insurance of possibility in moving in either direction. Stay tune to global news in oil market as fundamentals play as an important role now.

Gold

Gold prices traded in corrective swing and closed at 1226.00 for weekend. This week, we reckon the bulls might lift higher if the support can guard well at 1215.00 levels. Technically, we shall observe the breaking above 1265.00 that could lead higher to test 1300.00 benchmarks. However, this ascension can be realized only if the USDX declines to below 95.00 levels this week!

Silver

Silver prices did a small correction last week. Technically, we foresee the market will be supported at 15.000 – 15.200 bottoms with strong buying interest. If this support regions could remain intact, the pierce above 15.500 will possibly lead the bulls to 16.20 as our next target. Silver has not really begun its up run yet as Gold/Silver is still dawdling at high side of 80.000 levels. Be prepared for a fierce rally coming soon in Silver prices!

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed at 2585 for May delivery contract. Malaysia Government voices concern for French Government’s proposal to raise domestic tax on palm oil in 2017. Demand slowed down after the news and liquidation for profit-taking rose in FCPO market. This week, we foresee the trend may duck down to 2520 supports before moving into sideways correction. However, going above 2600 benchmarks might arise new demand to test above 2640 levels in case the bullish strength persists.

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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