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Gold and Oil Markets Report – 29 September 2014

A guest post written by DAR Wong and Chong HC

Commodities whipsaw last week after the FED Yellen commented faster interest rates rise may come sooner. USDX trend persisted in climbing higher above 85.50 levels that put lid on both Gold and Crude prices. Dow Jones benchmarks also swung sideways after reacting to the war tension of attack against Syrian ISIS militant forces. Crude oil inventories shrank 4.3 million barrels in prior week but did not help to push the prices up in market.

Crude Oil

WTI Crude prices have been supported at 90.50 bottoms and prone to trade higher in little technical recovery. Strength in USD index has been major reasons for putting the demand at low levels while investors are following closely on the development of war tension in Ukraine in Syria. This week, we foresee the market will likely trade higher at 94.50 for short-covering. Beware of falling below 90.50 supports as this will pose danger to market unwinding at 87.00 regions.

Gold

Gold prices traded in uncertainty last week while tested the 1207.00 bottoms twice. Market is still strongly resisted at 1230.00 levels with many sellers waiting to unwind their losses. This week, we foresee the market may move either direction but recovering upwards needs to clear above 1230.00 before we could be sure of bullish trend. Beware of breaking below 1207.00 bottoms that may test 1200.00 major benchmarks that many stop orders might be placed below this level.

Silver

Silver prices hit 17.340 bottoms last week and made small recovery. This week, we foresee the market will trade in narrow range from 17.000 – 18.000 regions until it breaks in either way. Beware of the bears going below 17.300 because this may land at 17.000 as we predicted last week. Gold/Silver ratio continues to surge higher into 69.50 levels that put the silver prices into low demand. This week, it will be a challenge to see if the ratio could spike above 70.00, otherwise turning down from this top area could be a sign to see Silver bottoming out soon!

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed at 6-week high on Friday. The exemption of sales tax grant by Malaysia government has helped to generate demand and expedite sales in this month. Active month in December contract closed at 2177 levels. This week, we reckon the trend might climb higher to 2230 regions while turning down will be supported a 2100 areas.

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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