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Gold and Oil Markets Report – 28 July 2014

A guest post written by DAR Wong and Chong HC

Gold trend whipsawed last week due to inverse correlation to Dow Jones benchmarks. Earnings from big capitalized stocks aid in supporting DJIA above 17,100 levels during mid-week. However, equity market slid on Friday after Ukraine tension rose amid Russian firings into the border. EIA reports a cut in crude inventories for the week ended 19 July and helps to demand support Crude prices. Analysts predict investors may search for new safe haven in Gold, Treasury bonds and Dollar amid war crisis in Gulf territories.

Crude Oil

WTI Crude prices have been resisted at 104.00 resistances last week amid market liquidation. The trend is uncertain as rising prices post threats to many countries. However, supply cut in inventories and Ukraine tension have driven support into the Crude market and make it stand above 101.00 regions. This week, we foresee the market will consolidate sideways inside this same range as the EMA200 averaging line acts as strong support at 101.00 levels. Continue to observe for fundamental news that has been influencing the Crude prices.

Gold

Gold prices fought between the opposite forces of being safe haven and firm U.S. equity prices with no clear trend ahead. This week, we reckon the support will sit well on 1285.00 regions and market may recover at 1325.00 for consolidation. Basically, the price trend is threading sideways and much affected by fundamental factors. However, traders need to stay alert in case the bears engulf below 1285.00 supports and turn reverse into southern sentiment.

Silver

Silver prices have shown strong reversal up sign in day-chart after it closed at 20.733 on Friday. Market will be well supported at 20.320 levels in coming week with rising demand. However, we also foresee there could be some selling pressure at 21.000 regions and need to pierce above here before more bullish sentiment will step in. Hence, the market may trade sideways from 20.320 – 21.000 ranges initially before it might finally break up!

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives hit the lowest level in almost a year. Market plunge is due the recent unsteady demand in emerging economy and contraction orders from India and China markets. October contract settled at 2265 levels for the weekend. This week, we predict market will be quiet amid long holiday and Raya seasons. Overall market trend still hovers in bearish outlook with range movements expected to consolidate from 2230 and 2350 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 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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