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Gold and Oil Markets Report – 02 Apr 2012

Early last week, US FED chairman Bernanke said more accommodative policies may be needed to sustain the recovery as rising job data and manufacturing could be short-lived. Dollar weakened and commodities firmed up as investors interpreted as further Quantitative Easing in the pipeline. However, the market bulls stalled very soon from mid week onwards and did not follow through the spikes.

Crude Oil

WTI Crude fell off the week’s high 107.74 unexpectedly and closed at 102.90 on Friday. Technically speaking, the previous support at 104.00 has turned into resistance benchmarks now while we target the trend to decline further this week. The market might aim at 100.00 benchmarks again while bargain hunting will arise from this region. Abandon your short-view if the trend violates above 104.00 levels.

Gold

Gold prices traded inside the consolidating range from 1644.00 – 1697.00 as we forecast last week. The market is still reads as bullish so long as it stays above 1650.00 supports. This week, we remain our view of firm sentiment of escalating higher to 1710.00 regions if it can be supported by strong fundamental news. Abandon your long-view and turn short if the market settles beneath 1650.00 levels!

Silver

Silver prices are weak and hovering around 32.00 regions after it declined from last week’s high 33.17. This week, we project the trend will be bearish with strong resistance emerging at 33.00 levels. The trend may test 31.00 supports before it recoils. However, we believe global investors are waiting for bargain-hunting below 30.00 levels if the market falls beneath there.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed higher on weekly basics and hitting 1-year record high at RM3497 /ton. The bullish sentiment was due to increasing exports while profit-taking on Friday turned down the market. June delivery month closed at 3433 with an overall turnover above 25,000 contracts. This week, we foresee support emerging at 3100 – 3120 regions while the bulls may aim to cross above 3500 targets again.

Dar Wong

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

Wong is founder and principal consultant of PWForex.com and holds a professional qualification in NASD series 3 and 5 approved by National Futures Association (USA). He was previously attached with Bankers Trust Futures Inc, Barclays ZW Futures and Smith Barney Shearson (Citigroup) Inc.

He is also an active trader and author of 8 Ways to Invest In China’s Emerging Markets. Wong is also columnist for The Star, The Borneo Post in East Malaysia, The Busy Weekly, The Trader’s Journal, The Forex Journal, The Pulses, The Analysts and Capital Asia magazine.

He is a regular speaker on trading topics as well as Master Speaker for the annual Asia Traders and Investors Convention (ATIC).

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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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