Gold and Oil Markets Report â 8 Oct 2018
- 8 October 2018
Gold prices closed slightly above USD1200 /oz on Friday and rattled into tight range trading. Overall market sentiment has not changed as the trading activity takes control from USD1180 – USD1210 /oz for past week. Price movements are moving into flat patterns and might breakout in either direction in coming week. We recommend risk control to be exercised as the potential headway of Dollar Index (USDX) is still unclear.
WTI Crude prices surged in early last week to USD76.90 /barrel and receded to USD74.30 /barrel on Friday. Disputes of rising oil prices among producing countries and President Trump has rattled the price movement into uncertainty. However, we have identified the firm Dollar to be irrelevant to Crude sentiment and might stay likewise in near future. This week, we forecast the trend may correct while supported at USD71 /barrel level. After threading inside USD71 – USD77 /barrel for a while, it will eventually pierce higher in coming weeks as output shortage increases.
Silver prices traded in narrow region around USD14.50 /oz last week. This week, our expectation remains unchanged as the overall range will be constricted from USD14.20 – USD15.00 /oz. Generally, market traders are watching the yellow metal closely and silver is temporary lagging in the market movement. Continual sideways trend is still expected in coming weeks.
Crude Palm Oil (FCPO) Futures on Bursa Derivatives closed higher after rebound from RM2150 /MT ground. Crude prices recovery has helped to lift most commodity and palm oil demand last week. December contract closed at RM2223 MT in moderate trading activity. This week, we foresee the market might slow down and swing sideways inmixed sentiment. Range is expected to move from RM2170 – RM2250 /MT but bargain-hunting is likely to emerge for long-term gains.
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DAR Wong and Chong HC are the market strategists in APSRI on CPO markets. DAR has 29 years of trading and hedging experiences while HC trades for 11 years and now coaches institutional customers. They can be reached at www.pwforex.com