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Gold and Oil Markets Report – 30 May 2016

A guest post written by DAR Wong and Chong HC

Gold and Silver prices dropped last week while yellow metals shook off more downside range due to panic liquidation. Venezuela sold USD1.7 billion worth of Gold reserves to repay debts. USD Index also edged higher towards 7-week highs and closed at 95.70 before weekend. Crude prices have reached USD50 per barrel benchmarks and catches global attention.

Crude Oil

WTI Crude prices touched 50.00 last week and closed near to this benchmark before weekend. Moving forward, we foresee resistance may emerge in market very soon though the top could reach into 52.00 levels. Global supply glut still lingers in market and the imminent of rate hike in min-June will be a threat to strong Crude prices. Downside support is identified at 42.00 and possibly will be tested again once the market corrects in near future.

Gold

Gold prices sank or 5 straight days last week and dipped below 1210.00 levels before weekend. This week, we reckon some recovery might emerge for profit-taking and trend should rise from 1210.00 to 1230.00 areas before non-farm payroll releases on Friday. This fall has completely shattered the confidence of long traders though we view as good opportunity to pick up new position below 1220.00 levels. Risk control should be exercised if the market breaks below 1190.00 supports.

Silver

Silver prices have been holding well above 16.00 supports while market traded near to this bottom last week. Technically speaking, we foresee range trading will occur from 16.00 – 16.60 regions for a while. However, beware of breaking below 16.00 as this might lead lower to 15.60 regions for finishing the correction. Long traders are advised to wait after mid-coming week to estimate the bottom as we move nearer to Friday data on U.S. non-farm payroll.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives rebound last week due to higher import from China and weaker Ringgit. August contract closed at 2558 while open interest reduced on Friday. This week, we foresee the market will recover high and hover around 2600 regions in mixed sentiment. Hence, range is expected to move from 2550 – 2650 regions.

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 26 years of trading and hedging experiences while HC trades for 7 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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