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Gold and Oil Markets Report – 26 May 2014

A guest post written by DAR Wong and Chong HC

Gold has been staying sideways for whole week with uncertainty. Despite rising Dollar, the yellow metal is supported by the threats of Ukraine crisis in addition to the dispute in Korea Peninsula and China Xinjiang bomb. Crude inventories slid 7.2 million barrels in prior week and surged as well. In our opinion, the simultaneous rise in Dollar and major commodity might not be ideal as interest rates may be threatened soon into tightening.

Crude Oil

WTI Crude prices traded in bullish sentiment last week from 101.50 bottoms to above 104.00 closing for the weekend. Uptrend is basically due to contraction in crude inventories and political dispute in Ukraine-Russia tension. Technically, market might be forming a triple-top formation at 105.00 – 105.30 regions this week but will remain questionable if it could surge higher beyond that. If the trend recedes into correction, we foresee the drawdown will come back to 102.50 levels for consolidation. Short traders should be cautious if the bulls really climb beyond 105.30 resistances in case of worsening Ukraine news.

Gold

Gold prices have been threading from 1280.00 – 1305.00 ranges but mainly caught in fluctuation swings. Technically, we favor a down move in yellow metal as demand gets weaker. However, the fundamental factors are lifting the market prices and we need to see a violation beneath 1280.00 supports before we can confirm the bear sentiment. Be cautious to take control of your loss once the trend pieces above 1305.00 resistances.

Silver

Silver prices also refrain from decline while the market has been hovering around 19.500 levels for price equilibrium. Technically, the market needs to break below 18.700 supports before it could slide further into bearish trend, This week, we shall observe the market since we reckon an imminent new direction will be coming soon. On the contrary, market needs to break 20.400 resistances in order to reverse into bullish sentiment.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower for the weekend due to contracting exports to China and India. August contract closed at 2515 with slight rebound after hitting intra-week low at 2492. This week, we foresee the market may make quick pull up in early week to 2540 areas before dropping again. Generally, market sentiment remains weak towards mid-term outlook over coming weeks. Breaking below 2490 supports may go lower to 2420 levels in near future.

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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