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Gold and Oil Markets Report – 28 November 2016

A guest post written by DAR Wong and Chong HC

The Dollar Index (USDX) roe to fresh 14-year high above 102.00 last week. Gold and Silver tumbled out of expectation and also due to the delay of commencement in Shenzhen-Hong Kong Market Connect. Chinese authority has reaffirmed the commencement will be pushed backward to 5 December. Crude prices have been holding above USD48.00 per barrel throughout the week until it fell to USD46.00 levels on Friday. Investors are observing the OPEC meeting outcome on coming Wednesday.

Crude Oil

WTI Crude prices are mainly trading within the range of 42.00 – 49.00 regions. This week, we foresee the sentiment may be weak prior to OPEC meeting on Wednesday. Reversal from bottom areas is expected after mid-week and move back to 50.00 top areas towards the weekend. Observe the extension beyond aforementioned price range for new directional trend. Risk control is advised on the setting directional position.

Gold

Gold prices broke beneath 1200.00 benchmarks and touched 9-month low at 1170.0 per troy ounce before closing at 1183.0 on Friday. This week, it will depend on Dollar Index trend from the outcome of OPEC meeting before we could estimate the direction of yellow metal. Technically, we predict support will emerge at 1160.0 in case of further drawdown but the possibility of short-covering at 1200.0 is highly possible.

Silver

Silver prices perked up on Friday amid light trading activity after it tested 5-month low at 16.140 levels. Market closed at 16.520 in bargain-hunting. From technical aspect, we foresee Gold and Silver will recover for profit-taking this week after 2 weeks of bear trend. Silver prices are expected to sit tight on 16.100 supports while ascending back to 17.500 regions. Gold/Silver ratio has dropped from 73.00 highs again and signify a potential reversal from bottom in precious metals.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives tested 4-year high at 3098 last week before sliding ahead of weekend. February contract settled at 3031 while reflecting resilient uptrend in week-chart. This week, the possibility of down trend in FKLI may push fund into FCPO market to continue high recent high. Technically, the trend is supported at 2950 levels but hovering above this level will open high probability to break above 3100 resistances and aim for 3200 as next target.

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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