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Gold and Oil Markets Report – 23 May 2016

A guest post written by DAR Wong and Chong HC

Dollar Index (USDX) climbed higher above 95.00 last week and put lid on Gold and Silver prices. We reckon the Dollar Index will reach 96.00 – 96.40 tops before being countered by selling pressure, hence commodities might lie low till end of May before new buying interest summons in June. WTI Crude has slowed in ascension and capped below USD50.00 per barrel. U.S. FED policymakers make comments again on possible rate hike in June should economy point to growth.

Crude Oil

WTI Crude prices have slowed down in demand but still waiting for momentum to turn into negative zone before selling activity arises. This week, we remain dormant in market by observing the resistance at 50.00 levels to be tested. Short-term range is expected from 46.00 – 50.00 regions while turning down beyond the aforementioned range will be more prone to initiate new selling trend.

Gold

Gold prices slid and kicked long traders out of market after Dollar rose. Technically, we reckon the yellow metal will ebb in correction phase till end May before new buying interest steps into market. This week, the market may sink lower below 1240.00 to erase all long profits if it cannot cross above 1265.00 resistances. Range is expected to trade on lower band from 1235.00 – 1260.00 regions but clearing above 1265.00 will resume new bullish strength anytime.

Silver

Silver prices traded lower with yellow metal on drawdown correction. Technically, we foresee the market will edge lower this week with resistance emerging at 17.00 regions. However, moving down to 15.80 – 16.00 bottoms is possible for wiping out long traders in market before recovering in June. Risk control is advised for traders while patience is needed for good entry after coming mid-week.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on weekly bar as demand shrink from overseas market. August contract closed at 2527 on Friday with momentum turned into negative zone. This week, we foresee the market will remain in bear trend after small pull-up at 2560 regions. Downside target aims at 2450 regions as general commodity prices are expected to slide.

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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