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Gold and Oil Markets Report – 9 June 2014

A guest post written by DAR Wong and Chong HC

The US non-farm payrolls for May rise 217,000 in line with expectation while unemployment rate stays at almost 6-year low at 6.3 percent. DJIA and S&P 500 closed at historical highs at 16,924 and 1949 levels respectively. Last Thursday, European Central Bank (ECB) shaved interest rate to salvage slowdown threats in 18 nations but failed to press Euro value lower. Instead of drifting lower, Gold prices bounced with Euro currency after rate cut by ECB as signs of rejection by market sentiments. Crude prices poised for sideways trend amid immunity from war tension.

Crude Oil

WTI Crude prices traded largely from 101.50 to 103.50 regions last week. Main fundamental factors came from Ukraine war tension and inverse USD trend to Crude prices. The weekly Crude inventories for previous week was reported at minus 3.4 million barrels by EIA agency and helped to support energy prices. This week, we reckon the market may test lower at 100.50 supports while topside resistance will emerge at 104.00 levels.

Gold

Gold prices traded from 1240.00 – 1260.00 ranges last week while activity slowed down. After Euro rate cut on Thursday, yellow metal climbed higher against expectation and closed above 1250.00 levels for weekend. This week, we reckon the market outlook has become rather neutral and might move in either direction depending on fundamental lead factors. In our opinion, breaking above 1260.00 resistances might return to 1290.00 targets while breaking below 1240.00 is a sign of drifting lower to 1225.00 regions.

Silver

Silver prices bounced off 18.600 lows last week and closed at 19.000 levels for weekend. The market is trapped in neutral sentiment between 18.500 to 19.500 regions while waiting for fundamental news for coming week. We advise traders to track the market trend cautiously and control your risk in case of price adversity on your position.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on last Friday with August contract settled at 2412. The market is pulled down by lower export amid high inventory. This week, we foresee the market may recover higher at 2470 areas should short-covering appear in market. However, beware of breaking below 2370 supports as this may drive the price lower to test 2260 grounds.

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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