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Gold and Oil Markets Report – 7 April 2014

A guest post written by DAR Wong and Chong HC

The US DJIA slumped 159 points on Friday after the non-farm payroll rose 192,000 and showed signs of recovery. Market expects the FED to ease stimulus as bond yield has been rising for past few days. The Gold rebounded after payroll data due to strengthening Dollar. Crude oil prices also traded higher as the buying sentiment has been carried forward from Wednesday due to contraction in crude inventory in weekly EIA report.

Crude Oil

WTI Crude prices rose after mid last week when the crude inventory was reported at minus 2.4 million barrels against positive gains. Stronger Dollar has little effect on Crude prices as the market is still ogling at Russia-Ukraine tension. This week, we reckon the market will continue to sit on bullish sentiment with buying interest emerging at 99.00 areas. The uptrend might possibly reach 103.00 regions as open interest increases in Futures market. Trading long positions may be better but need to control with stop orders.

Gold

Gold prices recovered from last week’s at 1277.00 lows and closed at 1303.00 levels for the weekend. The market is prone to move into technical correction after declining for past 2 weeks. In our opinion, the buying interest will step in for this week and lift the prices to 1330.00 regions. Downside support will rise at 1290.00 areas which cannot be broken again lest the trend switches into bearish mode.

Silver

Silver prices traded in small range last week while closed at 19.952 for the weekend. This week, the market is prone to recover as well with yellow metal with support based at 19.600 areas. The sentiment will probably climb up to 20.600 levels on technical correction. In fact, we are prepared to see 21.000 targets in case strong buying interest emerges after mid-week.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed at 2659 in June contract. Market jumped from 2597 lows as we predicted last week. Roll-over activities will be expected to begin after mid this week. The sentiment is now moving into upward correction as we foresee the ascension might reach 2730 -2750 regions in coming week. Support will be resilient at 2600 grounds for time being while we expect general commodities will be firmer this week.

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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