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Gold and Oil Markets Report – 28 May 2018

A guest post written by DAR Wong and Chong HC

Crude Oil

WTI Crude prices fell about 6 percent correction last week after the news of loosening supply cut by Russia and OPEC members. Technically, we reckon a strong support will emerge at current 67.00 /barrel level with additional bargain-hunting at USD65 /barrel in case of further drawdown. Following the sanction on Iran, global shortage of oil supply will be expected over coming months. Target range will likely trade from USD65 – USD71 /barrel this week.

Gold

Gold prices swung up from USD1280 /oz last week and closed at USD1301 /oz for the weekend. This week, we have identified the market trend to be hovering at current EMA200 line and will probably thread sideways amid mixed sentiment. Range is expected to be contained from USD1290 – USD1320 /oz as flight of fund may temporary move from Crude to yellow metal.

Silver

Silver prices have been capped beneath USD16.80 /oz last week as we predicted. Moving forward, we are holding same outlook for the trend to be contained from USD16.20 – USD16.80 /oz until we see a breakout on the upside. In the forthcoming bull run again, we foresee that Silver will always surge faster than Gold due to the Gold/Silver ratio due to the high division ratio.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives has slight surging strength but seems to be lacking of strong buying forces. Ringgit staying at 3.97 level in the USD/MYR rate may climb higher to test 4.00 this week, however might not aid in pushing the FCPO demand higher. August contract closed at RM2455 /MT on Friday amid declining open-interest. This week, we forecast the FCPO trend may probably slide to test RM2400 /MT again before bouncing up. Topside resistance will emerge at RM2530 /MT in case of uptrend.

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 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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