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Gold and Oil Markets Report – 27 Jan 2014

A guest post written by DAR Wong and Chong HC

The U.S. Dollar Index plunged last week from 81.388 tops and closed at 80.458 on Friday. Short-term assets in U.S. markets like equities and currencies slid while Treasuries strengthened. Gold prices were lifted due to flight of fund movement into commodities. The International Monetary Fund (IMF) predicts global growth at 3.8 percent this year as led by the expansion in U.S. and U.K. economic recovery.

Crude Oil

WTI Crude prices have been recovering from 93.50 lows but resisted at 98.00 areas due to profit-taking. Technically, the market bulls are also barred at 98.00 levels by EMA200 line as strong resistance. This week, we foresee the market will thread from 95.00 – 98.00 regions as sideways consolidation. Beware of breaking above 98.00 resistances as market may try for 99.50 targets if the U.S. Dollar Index continues to weaken and Crude inventories contract.

Gold

Gold prices ascended last week from 1231.00 bottoms and closed at 1269.00 areas for the weekend. The market is read as bullish due to short-squeeze sentiment and also pushed by declining U.S. Dow Jones benchmark. This week, we reckon the support will lie at 1255.00 areas and could possible climb up higher at 1290.00 targets. However, selling pressure will be expected above 1290.00 areas for new shorting opportunity.

Silver

Silver prices were surprisingly weak as the market failed to close above 20.000 levels on Friday. This week, we predict the market might rise moderately following the bullish Gold trend but capped at 20.800 areas. The support still stays firm at 19.400 areas in case of selling activities trigger in market. Pay attention to fast dropping demand in Silver prices after mid week if the yellow metal fizzles out from 1290.00 tops!

Crude Palm Oil

Crude Palm Oil (FCPO) on Bursa Derivatives traded bullish on short-covering last week. The April month contract closed at 2590 on Friday. Weak ringgit might have lent some support in lifting Palm oil prices. This week, we predict the may drive higher at 2630 areas if the bulls can stand above 2550 supports. Otherwise, piercing beneath 2550 will initiate new bear trend towards 2500 levels.

Dar Wong

This post is contributed by OPF Guest Blogger, 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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