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Gold and Oil Markets Report – 7 May 2018

A guest post written by DAR Wong and Chong HC

Crude Oil

WTI Crude prices rose to new high in 3-1/2 years’ record by approaching USD70 /barrel. The rising Dollar has not affected the Crude demand though precious metals declined last week. Moving forward, we expect strong demand will build up around USD67 /barrel region and continue to push the market prices over USD70 /barrel. Traders are remaining acute observations in case the trend ascend to USD75 /barrel as the potential next target.

Gold

Gold prices fell last week inversely to rising Dollar Index (USDX) climbing to highest point above 92.00 level since January began. Yellow metal is seen supported at USD1300 /oz despite sharp falling recently. This week, we reckon the trend will recover for profit-taking but might be capped beneath USD1325 /oz level. Range is largely expected to contain from USD1300 – USD1325 /oz area.

Silver

Silver prices tested the strong support at USD16.10 /oz that was exhibited with many bullish demands since February. This week, we predict the market will recover but limited at USD16.80 /oz level. Generally speaking, movement will be contained from USD16.10 – USD16.80 /oz for time being but the subsequent breakup needs to be inspired by a fall in Dollar.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded in lower prices as the overseas demand has declined. Weaker Ringgit has not aid in pushing the FCPO market higher and despite Crude prices also improved most farm commodity prices last week. July contract settled at RM2342 /MT on Friday as open-interest dropped. This week, we reckon the trend may continue to slip further with strong resistance acting at RM2375 /MT region. The bearish factor is enlarging and might create panic selling to RM2200 /MT area.

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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