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Gold and Oil Markets Report – 22 Apr 2013

The Gold prices continue to plummet from last Monday after the China data. The Chinese government reports the Q1 growth at 7.7 percent which marks a fourth consecutive gain at less than 8 percent in past decade. Gold and Crude prices tumble in fear of contracting demands. Analysts expect global policymakers may adopt more easing stimulus to recover commodity demands in coming months. European Central Bank (ECB) President Mario Draghi comments the economic situation in the 17-nations remains no improvement since the last meeting on 4 April.

Crude Oil

WTI Crude prices reached 85.61 lows last week and met bargain hunting from the bottoms. This week, we reckon the trend will trade from 86.00 – 89.00 ranges in consolidation. Moving up above 89.00 immediate resistances may initiate further recovery to 90.20 targets. Technically, we expect the crude demands to stay at this bottom range for few weeks in tandem with fundamental influence from Saudi Arab cutting oil supply. China’s slowdown adds onto the selling pressure.

Gold

Gold prices hit 1321.00 bottoms before it closed at 1399.00 levels on Friday. The market was in oversold sentiments from panic selling last week but has been slowing down amid technical recovery. This week, we reckon the market will consolidate around 1410.00 regions again before dropping back to 1350.00 levels. Breaking above 1425.00 resistances could new buying interest to attempt 1455.00 targets.

Silver

Silver prices reached 29-month low at 21.983 last week and closed at 23.250 on Friday. The market has made only little recovery compared to Gold prices. This week, we foresee some selling resistances will build up at 24.000 while penetrating above it may gain at 25.400 levels. Downside support must hold at 22.000 regions lest the bears will attempt lower grounds should general commodity trend face more selling pressures.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives dropped last week amid contraction in general commodity prices. The July contract closed at 2294 on Friday after testing the 2264 lows. Much selling pressures came from China’s data after the growth was read as sign of slowdown in Asia. This week, we reckon the trend will sit well on 2250 supports while technical recover may aim at 2350 regions. Abandon your long-view if the market breaks below 2250 supports.

Dar Wong

This post is contributed by OPF Guest Blogger, DAR Wong.

Wong is the founder and Principal Consultant of PWForex.com and holds a professional qualification in NASD series 3 and 5 approved by National Futures Association (USA).

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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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