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Gold and Oil Markets Report – 07 May 2012

Crude prices began to fall in mid last week after Europe declared slowdown in demands. Friday release of contracting payrolls in US economy further hammered the crude prices to below 100.00 benchmarks for closing as investors lost confidence on the road of economy.

Crude Oil

WTI Crude prices sank to 100.00 levels as we predicted last week from our prone bias to bearishness. This week, we reckon resistance will emerge at 100.70 – 101.00 regions for many long traders to unwind their positions. The market might probably drill lower to attempt the 95.50 supports before short-covering surfaces. Therefore, we expect the range to stretch from 95.00 – 101.00 regions in coming week.

Gold

Gold has adhered to the bearish outlook of technical trend since it could not conquer above the 1650.00 resistance. Market fizzled out at 16710.00 regions last week from slowdown in European economy and cooling down in U.S. recovery. This week, we reckon the trend will be capped at 1650.00 resistances and likely will sink to test the consecutive supports at S1 – 1670.00 and S2 – 1580.00 areas.

Silver

Silver prices dipped briefly below 30.00 benchmarks last week but closed at 30.33 for the weekend. This week, the market will face big challenge since 31.00 resistances need to be violated in order to re-instate the bullish sentiment. If the market dips beneath 30.00 again, the bears might sink lower to 28.50 regions before we expect some bargain-hunting will emerge.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed lower on weekly basis while affected by deepening Euro debt crisis and plunging Crude prices. The July delivery contract closed at 3358 on Friday with overall market turnover more than 30000 contracts. This week, we foresee the market trend will remain weak and likely test 3250 support target. Resistance lies at 3550 regions.

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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