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Gold and Oil Markets Report – 4 June 2018

A guest post written by DAR Wong and Chong HC

Crude Oil

WTI Crude prices are being supported at USD65 – USD66 /barrel region that is the previous resistance area. This week, we reckon the trend will stay inactive from USD65 – USD68 /barrel while waiting for new fundamental news to lead a new recovery. Generally, market traders are waiting for FOMC meeting and the effects of Iran sanction to trigger new price movements.

Gold

Gold prices traded mainly from USD1290 – USD1305 /oz last week. The Dollar Index (USDX) has reached a stagnation at 95.00 and may recede in coming weeks. Henceforth, we forecast the yellow metal will find a strong base at USD1285 – USD1290 /oz region. Breaking above USD1310 /oz resistance will potentially recover at USD1225 /oz in 1-2 weeks’ time. Take note that the potential rate hike on 13 June may not necessarily spike Dollar higher.

Silver

Silver prices traded in narrow range amid limited activity last week. Technically, we do not foresee the directional trend until it breaks beyond the range of USD16.10 – USD16.80 /oz. Currently, traders are more focus on yellow metal trend and Silver needs to surge above the aforementioned resistance before market interest moves back to Silver.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded in small range last week. The weak Ringgit might have helped to support the FCPO prices on elementary basis but analysts are watching the regional demand as better indication for a potential recovery. August contract closed at RM2439 /MT on Friday amid low open-interest. This week, we forecast the market will remain range-bound from RM2400 – 2500 /MT though the support seems very firm. Breaking below RM2400 /MT needs to abandon your long-view.

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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