Gold and Oil Markets Report – 29 December 2014
Dollar is trading higher amid holiday seasons and thin market liquidity. Dollar index surges in more than 8-year high record above 90.00 levels and puts lid on most commodity prices. Crude prices were staying bearish and closed below 55.00 on Friday’s settlement. The Gold prices have been trading in weak demand but climbed from 1177.00 to 1195.00 close before weekend in responding to China’s stimulus speculation.
WTI Crude prices have been trading in weak demand after Saudi Arabia reiterated no cut in oil supply in 2015 despite plunge in prices. The day-chart has indicated a congested flag formation with possibility to see a breakout soon. Technically, we reckon the resistance will lie at 57.50 levels in case of upward retracement. However, downside potential is still opened to rooms at 45.00 – 50.00 areas if the Dollar rise continues to go new heights and hammer oil demand.
Gold prices may be threading in small market interest in this coming week amid long holiday market moods. We reckon the support will rise at 1180.00 while closing above 1200.00 benchmarks is higher possible for year-end window dressing. Technically, the range will be restricted from 1180.00 – 1210.00 regions and mixed sentiment will remain in-lieu of strong Dollar trend.
Silver prices have shown strong resistance at 17.000 areas last week. This week, the trend may try the 16.500 – 17.000 topside resistances again before decline. First support lies at 15.500 levels but we foresee some probability to see violation below this level in case of plunge in yellow metal and oil prices. Secondary support is identified at 15.000 levels.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives has been trading in bullish trend. March delivery contract closed at 2249 but open interest has dropped amid exits of long positions. The market is probably trimming down in liquidity for year-end book closing with contracting demand. This week, we reckon the trend may push a bit higher to 2290 in another short –week. Downside support will emerge at 2180 – 2200 regions.
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
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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