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Gold and Oil Markets Report – 05 Mar 2012

Gold prices plunged from 1790.00 regions for about USD100 range on last Wednesday after FED Bernanke remarked no more further stimulus is favored by central bank. WTI Crude oil prices shot up bypassed USD110.00 benchmarks upon rumors on Saudi Arabia’s pipeline being sabotaged. Oil prices retreated very rapidly after Saudi authority denied the rumors and commodity prices continued its weakening trend amid rising dollar strength.

Crude Oil

WTI Crude closed at 106.58 on Friday in New York session with bearish sign in day-chart. This week, we foresee strong technical selling forces will emerge at 108.50 which may not be violated unless some sensitive news arises from Middle East tension again. The down move trend will probably aim at 103.50 levels which was formerly a resistance turned into support now. We prefer to hunt for short position in early week if the trend recoils temporary upward.

Gold

Gold prices have turned down last week and created bearish patterns. We reckon the market players will become very sensitive in coming weeks and may hammer the trend lower due to panic selling lest further negative news. This week, the resistance should remain strong at 1735.00 – 1740.00 regions while lower target may aim at 1660.00 levels. In our opinion, we prefer to hunt for short positions in early week when the trend retraces upward.

Silver

Silver prices are showing more bearish sentiment in day-chart on Friday closing. The market has strong resistance at 35.70 regions while downside room is opened to 33.20 levels. This coincides with the support arising from EMA200 in day-chart that may see some buying interest should the market decline till there. Pay attention to strong dollar that may bludgeon the Silver prices faster due to technical recovery in Gold/Silver ratio to 50.00 regions.

Crude Palm Oil

Crude Palm Oil (CPO) Futures on Bursa Derivatives settled lower on reacting to drawdown in crude prices. The market is still in uptrend while possible to consolidate in coming week at 3200 regions. The May delivery contract closed at 3259 on Friday and may sink lower in early part of this week to the aforementioned support. Topside resistance is lying at R1 – 3300 and R2 – 3321 but breaking beyond R2 level could reach 3400 as in our previous forecast.

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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