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Gold and Oil Markets Report – 23 June 2014

A guest post written by DAR Wong and Chong HC

The US FED policymakers released FOMC statement in reassuring low interest but long-term interest rates may rise in 2015 though no clue was stated in time frame. Gold rose from comments of FED maintaining short-term low interest rates and also triggered by Iraqi tension. The fear in Iraqi internal military fight against the terrorist force has pushed yellow metal and Crude to close at higher prices on weekly basis. Crude inventories for last week was down 600,000 barrels in line with expectation though energy prices remained sensitive to purchase of hedging demands.

Crude Oil

WTI Crude prices reached 107.56 highs last week and made small correction. The market still reveals strong demand amid buying interest developed from Iraqi and Ukraine tension. This week, we expect the support to remain firm at 105.00 levels and bulls might climb higher at 110.00 regions. Long traders should manage risk efficiently while planning profit-taking towards higher prices. Continue to observe the Gulf situation to manage the trading plan for crude market.

Gold

Gold prices were pushed higher after digesting FED’s remarks on maintaining low interest rates. The market hovered at 1315.00 regions for the weekend close. This week, we reckon the trend will stay firm above 1300.00 supports and might ascend further after small consolidation. In our opinion, the bulls may continue to climb higher at 1330.00 regions in near future in case of market short-squeeze.

Silver

Silver prices broke above 20.000 resistances while entailing bullish trend in yellow metal. The market is temporary resistant at 21.000 with selling pressure growing in market. Technically, we foresee the uptrend will reach 22.000 levels as next target if the bulls continue to march up in coming week. Demand should stay above 20.000 supports if the technical strength wishes to remain in control of escalation.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded slightly higher on weekly basis from short-covering for profits. September contracts closed at 2443 after making intra-week high at 2477 last week. Moving forward, we reckon the market may test higher at 2490 regions before dropping. Support is identified at 2400 levels and giving way at this benchmark will likely resume bears market.

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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