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Gold and Oil Markets Report – 3 March 2014

A guest post written by DAR Wong and Chong HC

The US equity markets and Gold markets edged higher last week due to fear of tensions in Ukraine. The flight of funds have begun to search for safe havens in US and UK bonds as well since the yields for these instruments are seen lowering. American economy grew 2.4 percent in Q4 and lesser than initial estimate with inconsistent housing recovery. The weekly crude oil inventories were reduced to 100,000 barrels for the week 22 February and lifted the demands with falling Dollar.

Crude Oil

WTI Crude prices hovered on high prices amid receding Dollar and Ukraine tension before it finally settled at 102.70 for the weekend. The market is uncertain to make correction as buyers are preparing to push the market further if Russian warfare outbreaks. Technically, we foresee the market may either make small correction downwards or climb higher due to leading fundamental reasons. Going down will meet the 99.40 supports while reversal up might aim at 95.00 areas.

Gold

Gold prices were bullish last week and reached 1345.00 highs on rising demands. The market may go into corrective trend in coming week as the uptrend failed to conquer 1350.00 resistances. Technically, we expect the southward to sink at 1310.00 as our first targets. However, the bears may reach 1295.00 regions before we expect bargain-hunting starts to emerge. Though we favor corrective downtrend to occur, beware of another bull-run in case it breaks above 1345.00 resistances as this may lead to 1365.00 areas.

Silver

Silver prices reached 22.279 highs last week and receded to close at 21.215 on Friday. This week, we reckon the market will be prone to bearish sentiment as correction will likely continue. The violation below 21.000 immediate supports will go lower to test 20.500 areas before bargain-hunting may emerge. Immediate topside resistance should be resilient at 22.000 areas.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives ended higher for the weekend. The continual rise in prices came from low inventory stock and contracted production due to dry weather. The May delivery contract settled at 2800 levels with a spike on Friday. This week, we reckon the market will march higher once it passes above 2820 and probably climb up to 2950 targets. On the other hand, turning down will find its first support at 2710 if technical correction begins.

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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