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Gold and Oil Markets Report – 4 August 2014

A guest post written by DAR Wong and Chong HC

The Gold slammed down on last Wednesday night after FOMC meeting. FED Yellen reassured of low interests while announcing another uSD10 billion stimulus cut. Nevertheless, Ex-chief of Federal Reserve Alan Greenspan commented of overpriced value in stock markets and triggered the US 10-year bond yield to rise. Dow Jones benchmarks dropped 463 points throughout the week while Gold slid to 1280.00 bottoms.

Crude Oil

WTI Crude prices fell to almost 5-month bottom record due to demand contraction. Market prices slumped from 101.00 regions and closed at 97.00 levels throughout whole week. We believe the wind down has triggered liquidation of long traders and might see lower levels in coming week. Technically, we reckon the bears will drive down to 95.00 regions before bargain-hunting emerges. Topside resistance will start from 99.00 levels once short-covering initiates. This week, we favor picking short entry upon pull up retracement.

Gold

Gold prices closed at 1293.00 on Friday amid short-covering. Market will be tricky in near future as traders will observe closely on bond yields and Dollar index value. Technically, we reckon the trend will move from 1280.00 – 1320.00 regions as funds may flight into yellow metal as safe haven. However, beware of breaking below 1280.00 supports as this could lead to 1258.00 lower targets if selling frenzy is triggered in market by negative news!

Silver

Silver prices closed at the intra-week low 20.305 levels. This week, the market might go lower at 20.000 levels before bargain-hunting emerges. Topside resistance stays at 21.000 areas so we reckon the expected range could trade from 20.000 – 21.000 levels. It is important to observe the unexpected downfall below 20.000 supports that need to abandon your long-view.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives rebounded on Friday and closed at 2283 for October contract. Market reversed from bottom amid rising volume and believed to be short-covering for profit taking. This week, we foresee the trend may reach up at 2330 regions if demand continues. Support lies at 2250 levels but will be threatening for deeper penetration at 2200 if it gives way!

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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