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Gold and Oil Markets Report – 5 May 2014

A guest post written by DAR Wong and Chong HC

Gold and Crude prices spiked on Friday during lunch hours in Chicago session. Tension in Ukraine crisis punted on stock prices after violence erupted in Ukraine and lifted the metal and energy commodities out of fear. Non-farm payroll reported by US Labor Department surprised markets by 288,000 new jobs in April. This might give FED policymakers more room to remove stimulus readily till end of the year as mentioned by Yellen. However, interest rate raise remains as concern among investors despite reassured by FED Yellen of keeping low rates to ensure recovery.

Crude Oil

WTI Crude prices created new monthly low at 98.75 levels last week before bouncing higher on Friday to close above 100.00 benchmarks. This week, we reckon the market will be well supported at 99.00 areas in case of additional testing. Technically, the trend is prone to correct upwards at 102.00 regions as well as tension threatened by Ukraine war. However, beware of breaking beneath 98.50 supports in case of unexpected news as this will lead new selling forces out of panic liquidation.

Gold

Gold prices reversed from 1273.00 lows on Friday and tested above 1300.00 unexpectedly before settling at 1299.00 during market close. This week, we predict the support will rest at 1285.00 – 1290.00 areas before jumping higher on a reversal uptrend. On breaking above 1310.00 immediate resistances, the bulls might escalate higher to 1330.00 targets should war tension persists further in Ukraine. Abandon your long-view if the prices fall below 1285.00 supports.

Silver

Silver prices created 5–month low at 18.854 levels on last Thursday before reversing up at 19.500 levels on Friday closing. The market may escalate in strong forces to test 20.400 in coming week if the bullish trend returns. Technically, the closing above 19.650 in market will signal the beginning of buying interest and climb further. Pay attention to capture long-entry in early coming week while guarding your risk control at 19.000 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives settled lower on weekly basis due to weakening exports. The July contract ended at 2591 on Friday amid mild short-covering. Technically, we reckon the market may conduct sideways consolidation in coming week with resistance acting at 2630 – 2645 regions. Upon breaking 2570 supports, new selling forces will step into market and derive the demand down to 2500 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 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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