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Gold and Oil Markets Report – 31 October 2016

A guest post written by DAR Wong and Chong HC

Gold and Silver prices have been threading sideways last week but showed signal of rising on Friday before market closed. Dollar Index exhibits toppish pattern and may turn down from 99.00 levels this week. However, energy prices in Crude have turned softer as supply cut in global oil production could not be agreed by some OPEC members. Market awaits U.S. Presidential Election as headway to lead new direction in Dollar and interest rate policy.

Crude Oil

WTI Crude prices slid beneath 50.00 levels before last weekend. Market sentiment returns to weakness despite Dollar is prone to soften, mainly due to skeptical outlook of global cut in OPEC members. Iraq says they will be exempted from production cut as revenue is needed to fight terrorism within the country. This week, we foresee range is prone to fall and within 45.00 – 50.00 ranges.


Gold prices have been submerging beneath 1280.00 levels for many weeks but hold above 1250.00 supports. This week, we reckon Dollar correction may spike the yellow metal into recovery above 1280.00 as sign of uptrend. Going above 1280.00 levels will probably reach up to 1310.00 before the trend faces profit-taking again. Overall trend will subject to consolidation until we see a clearer Dollar direction in post-U.S. political poll.


Silver prices traded mostly within 17.400 – 17.800 ranges last week. Moving forward, we foresee the trend may rise above 18.000 benchmarks. Floating above the 18.000 levels will probably thread from 18.000 – 18.400 ranges in near future. Support lies at 17.300 currently for observing as cut-loss tolerance.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives consolidated last week though closed higher on weekly comparison. Open interest has diminished and we reckon the trend is going to break out in either direction soon after this consolidation. January contract closed at 2789 levels on Friday. This week, we may see the market will thread from 2750 – 2820 ranges while waiting to break out. Going into either direction will lead new trend with general commodity.

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

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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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