Gold and Oil Markets Report – 8 December 2014
The US non-farm payroll advanced in November by 321,000 while jobless rates held at 6-year low record of 5.8 percent. Dollar index surged on Friday evening to almost 6-year high at 89.30 levels and weighed down on commodity prices. Gold prices have been facing selling pressure above 1210.00 regions while Crude prices remain weak in the wake of rising US shale production. China reported lower manufacturing index in November that contracted demand for general commodity.
WTI Crude prices are still weak but should face some short-covering before Christmas for profit-closing. This week, we aim at small range moving from 63.00 – 69.00 regions while picking bottom with controlled risk might be good attempt for short-term profits. We foresee the last 2 weeks of December will be thin volume with small range in Crude trends. Sellers are advised to reduce positions before Christmas seasons.
Gold prices pulled up early last week after Switzerland National Bank confirmed they will not sell anymore Gold in near future. Yellow metal retraced upward to 1221.00 highs but dropped below 1200.00 for the weekend due to heavy selling pressure. This week, we reckon the market is still prone to trading sideways and might return to 1170.00 areas for finding equilibrium. Topside resistance will emerge at 1210.00 levels while market tends to trade in dwindling interest as it moves towards 2 more weeks to long year-end holidays.
Silver prices show toppish pattern in day-chart around 16.500 levels. This week, we reckon market may recede to 15.000 regions as Gold declines. Technically, there is a very strong support at 14.500 – 14.700 areas in case of drawdown at this region. Pay attention to the Gold/Silver ratio that has shown a reversal down chart. This indicates the imminent reversal of Gold and Silver prices in near future that could be in first quarter of 2015.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher compared to its opening price on last Monday. Short-covering was seen in market and also due to year-end tone down in market activity. The February contract closed at 2173 while commodity prices dropped in US session on Friday evening. This week, we project the market may resume its downtrend at 2080 as our first target. Topside resistance will emerge at 2230 levels but pulling up to 2200 areas could start to meet selling pressure.
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
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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