Gold and Oil Markets Report – 3 November 2014
WTI Crude prices traded in weak sentiment though it has been still held at 80.00 supports. Gold prices slid after the US FED announced full withdraw of stimulus following last Thursday’s FOMC meeting. Japan has decided to expand its monetary base to JPY80 trillion on annual bases and European Central Bank (ECB) also begins in buying covered bonds from Germany, Italy, Spain, Portugal and France for supporting the economic recovery. Stock benchmarks rose towards end of last week as celebration of central bank supports to revive global slowdown.
WTI Crude prices have been supported at 80.00 regions while the market traded in caution last week. The immediate resistance has emerged at 82.00 levels for coming week. Fundamentally, we expect the market will drive down below 80.00 supports this week if the reversal-up could not penetrate 82.00 resistances. Beware of this slide as it may fall towards our next support at 77.00 regions.
Gold prices have started a new selling bear trend right after it pierced below 1180.00 supports. This week, we reckon huge selling interest will ambush at 1185.00 – 1200.00 regions in case of small pull-up retracement. However, the market will be exposed to danger of plunging further as the new month begins in November. Breaking below 1160.00 supports will drive the southward trend to 1120.00 in this month.
Silver prices closed at 16.150 on weekend after falling together with yellow metal. Technically, we have identified the resistance at 16.800 regions for coming week but driving down is equally possible. In our opinion, the market may continue to fall further with Gold if the global stock sentiment continues to climb in another 1-2 weeks. Downside target is possible to reach 14.50 levels in near future and that will make the Gold /Silver ratio sharper towards the higher prices in 70.00 – 80.00 ranges.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivativestraded higher last week as consumption rate has been increasing on regional demand. Soybean oil is another source of pull-up factor as prices elevated. The January month closed at 2307 for the weekend while Open Interest contracted to 59,500 from average 85,000 throughout whole week. Technically, we reckon the trend will be resisted at 2350 levels if it goes up further. Likelihood of profit-taking will drive down the prices to 2230 as our first targets.
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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