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Gold and Oil Markets Report – 3 Feb 2014

A guest post written by DAR Wong and Chong HC

The US Dollar Index rose last week and closed higher at 81.25 on Friday. DJIA settled at minus 149 points for the weekend after tapering of second straight month by USD10 billion was announced in FOMC meeting. China also suffers at 6-month low record for its manufacturing PMI at 50.5 that might further wane market confidence in coming week. Crude oil inventories on weekly basis reported by EIA were higher at 6.4 million barrels for the week ended 25 January. Gold and Crude oil are expected to trade lower in near future.

Crude Oil

WTI Crude prices failed to stand above the EMA200 line at 97.80 on day-chart. The market is highly prone to fall in coming week as we believe selling pressure will build up at 98.00 areas. Technically, the market might drive down to test 95.50 levels if the bear begins its drilling action. Lookout for the dollar resilient strength that could bludgeon the Crude prices to beneath 95.00 benchmarks if inventories pile up higher.

Gold

Gold prices traded slightly weaker last week as Dollar rose after FOMC meeting. The monthly stimulus will be reduced to USD65 billion in February that quickly contracted demands for equity and general commodities. The yellow metal closed at 1244.00 regions for the weekend and is believed to be bearish in coming week. Technically, we foresee the trend will be resisted at 1255.00 – 1260.00 regions and trade lower at 1210.00, after breaking below 1230.00 initial supports. Abandon your short-view if the trend marches above 1260.00 levels.

Silver

Silver prices were bearish throughout last week and closed at 19.166 on Friday. The market is prone to continue in downtrend by entailing the yellow metal. Technically speaking, we reckon the trend may test 19.800 resistances in early coming week before it declines. Downside support lies at 18.750 areas and might be tested at the end of the week. Bargain hunting is not advisable as this coming bear trend may be a resilient fall!

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher on Thursday reversal up before long weekend. The April delivery month settled at 2563 after turning up from intra-week 2519 bottoms. This week, we forecast the selling forces will emerge at 2580 – 2600 areas that put a lid on the buying interests. The overall outlook for the market is still bearish with possibility to reach down at 2500 levels in near future unless the uptrend could break above 2600 ultimate resistances.

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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