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Gold and Oil Markets Report – 24 August 2015

A guest post written by DAR Wong and Chong HC

Gold prices ran up higher last week following the Chinese Yuan devaluation. Fund flight out of global equities and rush into yellow metal and sovereign Bonds. Crude prices remain stagnate at low demands as weekly Crude inventories increased 2.6 million barrels in the week ended 15 August. USDX has traded lower to 94.80 before weekend as fear of U.S. rate hike eases.

Crude Oil

WTI Crude prices declined to 6-1/2 year low and closed at 40.30 for the weekend. Market analysts fear the progressive low prices in energies at this low demand will trigger global recession in coming months. Technically, we do not see any support until it goes down to 34.00 in confluent with the low created in February 2009. In case of upward reversal, the trend will likely to reach up at 45.00 as our immediate target.

Gold

Gold prices ran up very fast last week and may take a small breather before going up further. This week, we predict the trend will consolidate at 1140.0 regions and re-gather bullish factor after mid-week to climb higher. Our target aims at 1175.0 – 1180.0 areas to complete this uptrend. Weaker Dollar is the main factor to push the Gold into recovery. However, the recent Yuan devaluation has also proven the importance of settlement in Gold trading using Chinese currency as it helps to lift the yellow metal quickly.

Silver

Silver prices have been rising slower than Gold prices though we foresee this situation is just temporary. Silver will run up at longer range eventually after Gold slows down in its bullish trend. This week, we reckon Silver prices will be supported at 15.000 levels and likely to climb higher to 15.800 at the end of the week. Literally, it is still ideal to pick bottom in Silver on its subsequent retracement if we see some dips. Week chart shows the recovery is just at the beginning.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded lower and back to our prediction at 1980 made last week. Low demand from regions importers is the main reason of bear trend despite Ringgit has been devaluing. November contract closed at 1986 on last Friday. This week, we expect the support to arise at 1950 and rebound is expected to emerge with target set at 2070 region.

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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