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Gold and Oil Markets Report – 06 August 2012

The yellow metal and crude prices were weak in early last week while it tumbled on Thursday after no sign of stimulus came as promised from European Central Bank (ECB). In the monthly Monetary Policy Committee (MPC) held in London, Bank of England (BOE) also held its policy unchanged despite British economy deepens into recession. On Friday, US non-farm payroll increased hiring by 160,000 jobs which lifted the metal commodities and Crude markets.

Crude Oil

The WTI crude prices reversed strongly on last Friday from 87.50 bases and closed at 91.36. The trend moved in our correct prediction again as forecast last week. This week, we reckon the bullish sentiment in crude and energies may continue its upward momentum to 93.50 regions while sitting firmly on 89.50 supports. Technically, we expect strong sentiment in early coming week but beware of profit-taking towards weekend if the bulls reach above 93.00 benchmarks.

Gold

Gold prices dipped down to 1583.00 regions as we forecast but the market spike on Friday after the US released its non-farm payrolls increment. The market closed at 1602.94 for the weekend. Moving forward, the trend becomes skeptical again due to many influences from fundamental factors. However, we reckon the support will lie at 1597.00 levels and market will be more prone to trade in narrow range towards 1615.00 regions in coming week. Abandon your long-view if the trend violates beneath 1597.00 levels.

Silver

Silver prices rose from the 27.00 bases on Friday and closed at 27.90 for the weekend. This week, we expect firm sentiment to build up in market and topside potential could reach 28.50 levels. The carryover of bullish interest from Friday might lift the market up further in coming early week before profit-taking emerges towards weekend. Our overall trend analysis in Silver is bullish for this week while observing the 27.00 supports to be reinforced.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives waded in weakness after it slid to 2905 on Friday. Last week, the market hit topside 3000 benchmarks as we forecast previously and fell thereafter. The October delivery month closed at 2918 for the weekend in light volume traded. This week, we reckon an initial sell down to 2850 supports before the trend may turn up short-covering with crude and other commodity products. If the support regions can guard well at 2850, there is still a possibility to see sideway trend ranging to top 2970 resistances.

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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