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Gold and Oil Markets Report – 26 January 2016

A guest post written by DAR Wong and Chong HC

Crude prices recovered from 12-year low after hitting 27.50 bottoms last week. Crude prices settled above USD30 per barrel and relieved global traders from fear of equity plunge. Gold prices continue to poise firm and make its way to 1100.00 benchmarks due to flight-in fund for safe haven. Dow Jones benchmarks caused panic in market during mid-last week after it hit 15,450 lows recorded in August but floated to 16,000 regions for weekend.

Crude Oil

WTI Crude prices floated above USD30.00 levels for weekend closing. Market tested 12-year low at 27.50 bottoms before crawling up. However, we do not expect rapid recovery yet as resistance is spotted at 33.00 levels. Therefore, we reckon range will be constricted from 27.00 – 33.00 regions in coming week. Breaking above 33.00 may reach 35.00 levels for short-term target. Fundamentally, sentiment is still weak in market for picking new long positions.


Gold prices hover at 1100.00 benchmarks before weekend and strength began to build up in market. This week, we foresee the range will be capped from 1080.00 – 1120.00 regions though favor is lean on the upside. As Crude slows down in its decline, we expect more interest will move into Gold as safe haven to global investors. USDX will be another factor to push yellow metal inversely higher eventually incoming weeks.


Silver prices traded in firmness though the rise has been small. This week, we foresee support will guard at 13.850 regions while bulls may climb higher in market. Target resistance is spotted at 14.500 levels in case of market rise. Ratio of Gold/Silver division at almost historical rate near to 79.90 still makes it worthwhile to long Silver as it may ascend faster than Gold when both begin to recover in coming months.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded in small range but higher on Friday. Market stabilized from recent fall as Crude prices began to recover on last Friday. April contract settled at 2459. Technically, we are not really optimistic to see rapid rise in FCPO market as resistance exhibits strongly at 2480 levels. Breaking below 2420 will probably initiate new selling pressure to head down at 2350 areas.

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

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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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