Monthly Archives: September, 2011
Gold and Oil Markets Report – 26 Sep 2011
A guest post written by DAR Wong Gold Gold prices was sold heavily last week while investors liquidated in fear to euro debt ballooning. Commodities like Gold and Crude oil were hurt in downfall for fear of recession in global economy. The market dropped from early week’s high 1826.70 to beneath 1650.00 on Friday. This week, we reckon strong support will emerge at 1630.00 levels and consolidate sideways back to 1720.00 regions. However, breaking beneath 1630.00 may test lower grounds at 1605.00 benchmarks if fundamental factors drive the prices southwards! Silver Silver prices fell sharply on Friday for more than USD6.00 to 29.76. The market closed at 31.05 with a long black day candle. This week, we expect technical consolidation to arise and wriggle its way back to 34.40 regions. As all commodities have fallen too rapid last week, it is natural to see some sideways trend to follow through [...]
Currency Market Observations – 26 Sep 2011
A guest post written by DAR Wong The Euro contagious debt crisis melts global stocks Fundamental Outlook The global equities plunge due to contagion of euro debt crisis spreading from Greece. Analysts predict the imminent emergence of global crisis if the Eurozone does not resolve the deficits in shortest time. The U.S. economy shows persistent fatigue while President Obama proposes another tax increment by USD1.5 trillion over a decade. The U.S. housing starts dropped 5 percent in August to a 3-month low at 571,000 annual rates. The existing home sales rose 7.7 percent from July to 5-month high amid falling property prices. Another separate report showed by U.S. Conference Board’s gauge of near-term outlook climbed 0.3 percent after a 0.6 percent gain in July. Initial jobless claims decreased 9,000 in the week ended 17 September to 423,000. Federal Reserve has announced the replacement of USD400 billion in short-term debts with [...]
Gold and Oil Markets Report – 19 Sep 2011
A guest post written by DAR Wong Gold Gold prices swung up largely on Friday closing after stronger U.S. confidence. The market closed at 1810.90 after it came up from last week’s low 1762.50. We foresee the trend will move sideways from 1760.00 to 1845.00 in near term but still prone to fall further if the bears return to market. Trade cautiously and patiently as we expect the market may create another double-bottom at 1700.00 regions before November. Silver Silver prices seem to be very strong after making an upward reversal from 39.35 regions. However, we reckon the trend has to break above 41.33 in order to confirm the bullish recovery. The market is uncertain as it entails Gold prices that may be trading into sideways in coming week. Abandon your short-view if the market violates above 41.33 while breaking beneath 39.35 indicates a new bearish trend will emerge. Crude [...]
Currency Market Observations – 19 Sep 2011
A guest post written by DAR Wong The US stocks lead Asia equities into recovery Fundamental Outlook The US stocks rebound amid quiet week. Economic data remained weak but funds moved into US equity as safe haven. European debt crisis has been put a lid on flaring news but analysts foresee no concrete solutions from Governments. The import-price index into US country declined 0.4 percent in August after followed a 0.3 percent increase in July, due to dropping cost in oil and food. The Government’s budget deficit widened in August while the gap climbed to USD134.2 billion compared to shortfall of USD90.5 billion in same month a year ago. The US retail sales remained unchanged in August compared to 0.3 percent gain for July. Producer price index also stagnated after a 0.2 percent increase in July. Other reports showed consumer price index increased 0.4 percent in August and jobless claims [...]
Gold and Oil Markets Report – 12 Sep 2011
A guest post written by DAR Wong Gold Gold prices dropped sharply on Friday from 1885.90 to 1822.70 due to negatives vibes spread from Greek sovereign debts again. This week, we reckon the market will consolidate sideways from 1840.00 – 1870.00 in early wee but still prone to fall further. We expect the trend to drive down to 1770.00 as our first targets if Euro stocks sink again. Abandon your short-view if the market reverses and settles above 1870.00. Silver Silver formed a strong bearish engulf pattern on Friday session with resistance acting at 42.60 levels. We expect the market to entail Gold trend and will extend down to 40.30 targets soon. While investors are sensitive to both Gold and Silver prices due to recent margin hike in CME Exchange, sell down in these 2 instruments could be rapid if the snowballs begin. Traders are advised to enter short trades [...]
Currency Market Observations – 12 Sep 2011
A guest post written by DAR Wong Stocks plunge amid renewed Greek debt crisis Fundamental Outlook The US President Obama reveals a USD447 billion proposal that will raise Gross Domestic Product (GDP) in 2012 and add jobs. Commodities and stocks plunged on Friday after Greek debt emerged and implicated selling fear. Japan slows down in economy but waiting for another intervention stimulus with G7 nations. The US Institute for Supply Management’s index of services increased to 53.3 in August from 52.7 in July, making unexpected jump against forecast of decline. Another report showed trade deficit narrowed in July as exports climbed to a record. Trade gap shrank 13.1 percent, the most since February 2009, to USD44.8 billion from a revised USD51.6 billion shortfall in June. Jobless claims climbed by 2,000 to 414,000 in the week ended 3 September. The US Commerce Department said whole inventory rose 0.8 percent in inventories [...]
Gold and Oil Markets Report – 5 Sep 2011
A guest post written by DAR Wong Gold Gold prices rose again last week due to pessimism in U.S. outlook and market closed at week’s high on Friday. The investors have digested the margin hike imposed 2 weeks ago by CME Group and flight into Gold again as safe haven! This week, we reckon the trend will slow down on topside while being capped at 1900.00 resistances. According to our technical study, the market may come back to S1 – 1830.00 as form of technical digestion. Any extreme case of fundamental news may even drive the Gold prices back to S2 – 1810. However, the market may form double tops first at 1910.00 levels before retracing downwards. Silver Silver was trading slowly in early last week until it spiked up to close at 43.22 on Friday, near to the week’s high. Just like Gold, Silver prices may spike higher in [...]
Currency Market Observations – 5 Sep 2011
A guest post written by DAR Wong The DJIA plunged again after stagnated U.S. job data Fundamental Outlook The DJIA was down 253 points on Friday after U.S. non-farm payroll showed stagnation and jobless rate remained at 9.1 percent. In Japan, investors expect another intervention in rising yen by Bank of Japan (BOJ) after 3 months of unsuccessful stimuli. Market analysts expect the European Central Bank (ECB) to reverse back to lower rates for stimulating economy growth. U.K. is having weaker outlook and pessimism among consumers. The U.S. pending sale of previously owned homes fell in July by 1.3 percent after followed 2.4 percent gain the previous month. Consumer confidence measured by Conference Board’s index slumped to 44.5, the weakest since April 2009, from a revised 59.2 reading in July. The S&P/Case-Shiller index of property values in 20 cities fell 4.5 percent from June 2010 on annual basis and could [...]
