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Gold and Oil Markets Report – 31 March 2014

A guest post written by DAR Wong and Chong HC

Gold prices declined deeper last week due to rapid liquidation. The reason might be due to rising Dollar and market reacted little to the sanctions of Russia by the G8 nations. The Crude inventories rose 6.6 million barrels in previous week but oil prices surged ahead of weekend from better U.S. consumer spending. The Gold-Crude ratio has widened while most traders expect the yellow metal will begin to short cover in coming week.

Crude Oil

WTI Crude prices surged after Wednesday above 100.00 benchmarks after the G8 and western countries voiced sanction against Russia. Media reported that Russia may attack over Ukraine through reinforcing military exercise caused market tension and triggered buying hedge in oil prices. This week, we foresee the market will sit on 100.00 supports and climb higher to 103.00 – 103.50 targets amid more buying interest.

Gold

Gold prices slid from 1334.00 top to 1286.00 bottoms in straight downward patterns while closed near to the low regions. The market may begin to rebound this week with the support rising at 1275.00 areas. Technically, we target the range to cover from 1275.00 – 1315.00 regions in-lieu of Russia resurging tension with Ukraine. Abandon your long-view if the trend cannot hold well above 1275.00 levels.

Silver

Silver prices traded in weak sentiment and closed at 19.820 levels for weekend. This week, we expect the trend to hold and reverse upward if the market could stay above 19.500 levels. On moving up, the resistance may emerge at 20.500 areas where sellers will step in to liquidate their long positions. Pay attention to falling Gold-Silver ratio which indicates faster rising in Silver in case both metals begin to short cover this week.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on weekly basis due to weak demand of commodity. The May delivery contract settled at 2653 in bearish sentiment. This week, we foresee the market direction will continue to decline and may test 2600 supports before buying interest emerges. Topside resistance capped at 2770 levels.

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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