Gold and Oil Markets Report – 12 August 2013

A guest post written by DAR Wong

The U.S. economy showed recovery last week with consumer borrowing increasing USD13.8 billion in June while wholesale inventories declined from higher demand. Dollar weakened amid better report in ISM’s service index at 56 in July. Gold prices have been volatile from wide speculation of tapering stimulus and Crude.

Crude Oil

WTI Crude prices whipsawed down to 102.20 regions and closed at 106.00 levels for the weekend. Technically, we forecast the trend will be trading from 104.00 – 106.60 areas in coming week. As long as the weekly report on Crude inventories is rather in-line with the median forecast, market will probably more inversely to the Dollar (USDX) strength. In our opinion, we reckon the trend may be prone to bearish sentiment as Dollar may see some short-covering for profits soon. Therefore, picking short-entry in Crude prices may be viable if risk is properly managed.

Gold

Gold prices yo-yoed from 1320.00 highs during early last week to 1272.00 lows while it closed at 1314.00 levels for the weekend. Speculation of cutting stimulus and Dollar fluctuation will continue to affect the Gold demands in market amid high uncertainty. This week, we expect the market to consolidate initially from 1297.00 – 1320.00 regions while waiting to be led by market co-relational influence. Breaking below 1297.00 supports may head down to 1280.00 areas again but piercing above 1320.00 resistances might test 1340.00 regions.

Silver

Silver prices closed at 20.540 on Friday after market short-squeezed toward weekend. This week, it is hard to predict the market as uptrend may be challenged by strong resistance at 20.800 areas. However, the market may be prone bias to consolidate from 19.900 – 20.600 regions before new directional trend can be derived. If the market could not trade below 20.115 on Monday, it may imply more buying strength in market to attempt 20.600 targets.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded in light volume last week ahead of long weekend. The market may continue to be inactive on Monday until mid week when Raya seasons are over. October delivery month closed at 2210 on last Wednesday. This week, we reckon that breaking below 2200 supports will slide further. Our opinion project the range to be moving from 2120 – 2300 regions. Breaking beyond the extreme is a sign of new direction.

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). Subscribe to OPF Blog via Feed Reader or Email

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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