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Gold and Oil Markets Report – 24 Feb 2014

A guest post written by DAR Wong and Chong HC

The US policymakers claim readiness to hike interest rates if the unemployment falls below 6.5 percent. On the other hand, Bank of England (BOE) governors remain committed to low interest rates for seeing through the full recovery as budget surplus still rose at small pace in January. Last week, Japan’s policymakers said they will boost the lending program and suppress low interest as investors are concerned of rising sales tax in April. Commodity prices in Gold and Crude stayed firm through whole week amid small corrective prices.

Crude Oil

WTI Crude prices closed at 102.20 after falling from 103.30 highs last week. This week, the market could be turning down for technical correction as well if USDX begins to move higher above 80.50 levels. The weekly Crude inventory reported last week was below expectation at 1 million barrels only and triggered buy-up in the market. Therefore, we reckon the market will be prone to correct on early coming week in view of our target at 99.30 regions. Pay attention to the inventory report again after mid-week.


Gold prices reached 1332.0 highs last week then followed by profit taking emerged. This week, we foresee the market will trade lower at S1 – 1300.00 and S2 – 1280.00 levels if correction initiates. Bullish factors have been strong in the market for past 2 weeks and we reckon this coming down move may be just short-term digestion. Abandon your short-view if the trend pierces above 1332.00 resistances.


Silver prices have been very well resisted at briefly just below 22.000 levels throughout last week. The market is prone to travel southwards in coming week and aim at 21.000 regions as first target areas. Currently, the market is capped beneath EMA200 line on day-chart after it failed to pierce above this resistance line for few attempts. Pay attention to Gold prices as the trendsetter this week for leading the Silver into downturn correction. Abandon your short-view if the trend breaks above 22.000 resistances.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives continued to march higher last week and closed at 2755 on Friday in May delivery contract. Rising volume and Open Interest were pushed up by the export growth that might lift the prices higher in coming week. This week, we reckon the bulls is prone to climb to 2820 levels while falling back will be supported at 2650 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

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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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