Gold and Oil Markets Report – 8 September 2014
The US monthly payroll grew at smallest pace by 142,000 in August, hinting the interest rates might not be raised so soon yet. European Central Bank President Mario Draghi declares more stimuli will be implemented with EUR700 billion financial aid since Euro area inflation is way below 2.0 percent mark amid slowdown. In Japan, policymakers have refrained from putting up more stimulus package thought Finance Minister Aso comments they could be on the way of preparation. Last week, Gold prices declined while Crude prices also traded sideways in weak demand.
WTI Crude prices trade sideways while settled almost at inter-week’s low at 93.29. Technically, we reckon the trend pattern is narrowing into a flag formation with strong support resting at 92.50 levels. The market might be resilient at 95.00 for the time being and being suppressed by strong US Dollar rise. Beware of breaking below 92.50 support that will drive lower at 91.00 benchmarks.
Gold prices declined from 1290.0 tops and settled at 1268.0 regions on Friday. This week, it will be crucial to observe the 1260.0 supports because violating beneath here might go down to 1240.0 targets. However, day-chart shows a pretty good reversal that if it could stand above 1260.0 supports, market will probably recovery at 1290.0 again while waiting for more fundamental leads.
Silver prices have been moving in little range while selling activity becomes lesser. This week, we reckon the market will be well supported at 18.600 grounds and probably recovery higher at 20.000 benchmarks. Silver commodity is considered cheap at the moment and may prepare to turn anytime once Dollar draws down. However, beware of the price falling below 18.6000 supports lest the bears will go lower to 18.000 bottoms!
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed high on Friday after market sentiment rebound. The Malaysia ministry official announces sales tax exemption for September and October in hope to salvage the price decline. November contract closed at 2028 level before the weekend. Technically, we reckon the market is supported at 1970 levels while short-covering may continue to climb until 2100 regions. Pay attention to more government news for leading the market prices out of slump.
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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