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Gold and Oil Markets Report – 22 May 2017

A guest post written by DAR Wong and Chong HC

Gold prices poise for balance around USD1250 /oz before the weekend as demand rose. The recent bottom at USD1215 /oz might have formed a solid foundation with a shallow base expected to be formed at USD1235 /oz this week. In the event of piercing above USD1265 /oz resistance, we forecast the uptrend will aim at USD1285 /oz as our next target. Thus, focusing at fishing for bottom is preferred with risk control in coming weeks as Dollar recedes.

Crude Oil

WTI Crude prices regained to USD50 /barrel before weekend after President Trump stopped over at Saudi Arabia for state visit. Technically, we only foresee a sideways consolidation occurring in market and the range may probably swing from USD48 – USD52 /barrel in coming weeks while waiting for more fundamental leads. Dollar strength will play as an important role in inverse correlation to Crude but no clear sign of breakout will be confirmed until the trend extends beyond the aforementioned range.

Silver

Silver prices traded in sideways trend last week but we reckon this pattern as a consolidation to ascend higher in rear trend. This week, we predict the trend will be supported at USD16.50 /oz and cap beneath USD17.00 /oz for time being. However, there is a good chance for running up to USD16.50 /oz target before profit-taking begins to occur. Moreover, we also track that the XAU/XAG ratio has revealed sign of turning down from current 74.00 area that will logically spike Silver higher in near future.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded sideways last week without clear directional trend. Prices have wound down due to slower demand from overseas buyers and weaker soy oil. The newly rollover month in August contract closed at 2635 level on Friday. This week, we expect a drawdown may test RM2580 /MT before rising again. Without falling beneath the support, a potential climb to RM2700 – RM2750 /MT is high achievable in coming weeks.

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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