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Gold and Oil Markets Report – 7 July 2014

A guest post written by DAR Wong and Chong HC

The US monthly payroll in June surged 288,000 and hyped up the Dow Jones markets. Last Friday, DJIA reached all time high 17,074 after the US job report. American unemployment was down to 6.1 percent. However, FED Yellen hints that interest rate policy may not be suitable to be used as benchmark to measure economic recovery. Gold dropped inversely to higher equity prices while Crude prices also receded as market took profit from 108.00 highs before the long weekend in US markets.

Crude Oil

WTI Crude prices fell last week as profit-taking occurred from 106.00 highs. Crude inventories were down on weekly basis by 3.2 million barrels but was unable to support demands in market. This week, it will depend on the Iraqi internal situation to gauge the crud direction. We foresee the trend might go power to test 102.50 levels if the bears persist in market. Topside resistance will emerge at 105.00.00 regions and subject to the worsening to the geo-political crisis in the Gulf countries.

Gold

Gold prices swung down to 1305.00 low after the US payroll numbers and recovered at 1320.00 regions for the weekend close. Market is still bullish and prone to rise in coming week should it floats above 1310.00 levels. Theoretically, yellow metal is moving inversely to DJIA due to flight of funds. This week, we foresee the market might break above 1326.00 tops created last week and climb higher at 1350.00 areas in case equity faces correction. Abandon your long-view if the 1310.00 supports are violated!

Silver

Silver prices have been moving in tight range from 20.800 – 21.300 regions with uncertain direction. This week, we shall observe the breaking of either side to see a new extension thought it could be prone to ascend. Technically, we forecast the trend could reach up to 22.000 levels should the bulls gather strength in metal markets. However, abandon your long-view if the trend sinks beneath 20.800 supports.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives recovered to 2436 highs last week but closed lower for the weekend. Weak sentiment spread into market entailing declines in soybean oil in CBOT. September contract settled at 2402 on Friday amid liquidating forces. This week, the market may be tricky because the range possibility is opened to 2350 – 2450 regions. Market may pull up in early part of coming week before falling again.

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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