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Gold and Oil Markets Report – 22 September 2014

A guest post written by DAR Wong and Chong HC

Gold declined again last week to 1220.00 regions as US stocks climbed to new historical highs. Weekly Crude inventories reported by EIA stocked up 3.7 million barrels that pushed the prices at low side. Last week, attention was staked at listing of Alibaba.com in NYSE and voting for independence in Scotland. They drove the US stock prices higher that edged the commodity prices lower and lifted US Dollar. Euro and Pound resumed into weakness on late session before weekend.

Crude Oil

WTI Crude prices tested the 95.00 resistances last week and fell as we expected. The market is still in low demand due to increasing weekly stockpiles and skyrocketing USDX trend. This week, the market is likely to trade sideways while range is still constricted from 91.00 – 95.00 areas. However, we foresee there might be quick decline to test the 90.00 support benchmarks if Dollar stays resilient in uptrend.

Gold

Gold prices traded lower on Friday and closed at 1215.00 levels. This week, we foresee the market will remain weak and could drive lower at 1200.00 to squeeze out long traders who have started to enter the market. Resistance is seen tough at 1230.00 and the bulls have to pierce above this region before resuming the uptrend. The strong USDX trend has put a lid on yellow metal prices and might continue to suppress it till mid October.

Silver

Silver prices gave way on Friday and plunged beyond 18.250 supports. Market closed at 18.820 areas and caused a sharp rise in Gold/Silver ratio at 68.00 regions. This week, we reckon the Silver will continue to fall to 17.000 grounds before meeting the bargain-hunting powers. For time being, resistance will emerge at 18.250 levels that have caught many people un-alerted through breaking this level. We expect market to trade in weak sentiment till end Oct.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed in profit-taking ahead of weekend. The December contract has moved into active month and closed at 2109 level on Friday. This week, the market may be trading lower while support will stay strong at 2050 regions. Beware of piercing above 2175 resistances as this situation may drive up to 2200 regions.

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 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

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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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