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Gold and Oil Markets Report – 25 August 2014

A guest post written by DAR Wong and Chong HC

The US and the European Union jointly condemn Russia’s decision to send a convoy of 280 trucks into the battle-torn eastern Ukraine. Russia claims to deliver humanitarian aid while Ukrainian government calls the unauthorized entry as “invasion.” Both Crude and Gold prices traded lower on weekly basis as Dow Jones stocks climbed higher. This week, both commodities might recover amid the geo-political tension in Ukraine.

Crude Oil

WTI Crude prices closed at 93.30 on Friday and near to intra-week low at 92.60 levels. The market is threading sideways amid uncertainty and affected by war tension in Ukraine. This week, we reckon the range will trade from 92.00 – 95.00 regions as short-covering may emerge. However, market sentiment is still weak with many long trades stuck at higher prices. Hence, we suspect lower bottom may be created below 92.60 levels before market rebounds.

Gold

Gold prices fell to 1271.00 lows last week and closed at 1281.00 levels for the weekend. The market reacted inversely to higher stock prices as S&P index hit historical high at 1994.00 regions. This week, we reckon the trend will begin to recover and trade from 1270.00 – 1305.00 ranges as short-covering arises. However, beware of panic selling if stop orders are triggered below 1270.00 as this might land at 1255.00 bottoms before bargain-hunting emerges.

Silver

Silver prices traded in mild weak sentiment last week since market attention was mostly in yellow metal. This week, we foresee the trend may fall further at 18.600 bottoms if the market could not pull up above 19.600 levels. Silver will be tracking behind Gold in the trend direction and depend on fundamental news to lead a new way. Only climbing above 19.600 levels will recover into bullish sentiment and possibly reach 20.000 targets!

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives broke and settled at 2000 for the November delivery month. Market has been trading in weak demand amid other soft commodity as USD escalates. This week, we see great challenge in market for recovery as selling pressure will emerge at 2050 levels. Though the 2000 level is a psychology benchmark, trading below this price level may trigger more selling to test 1900 bottoms due to liquidation of loss!

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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