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Gold and Oil Markets Report – 1 April 2013

A guest post written by DAR Wong

Last week, it was a short week in US financial markets due to Good Friday. The American economy has been on recovery track while gaining 0.4 percent growth in Q4, following 3.1 percent in previous 3 months ended September 2012. The Cyprus bailout has been resolved with rescue package of EUR10 Billion agreed through European Union and European Central Bank (ECB). Cypriot government finally bows to creditors for shutting down the second largest bank and raised EUR5 Billion through imposing a new tax levy on depositors.

Crude Oil

WTI Crude prices have been behaving strong despite USDX stays afloat 82.70 levels. The market is seen with rising support at 94.50 areas now and might climb higher in coming week. OPEC crude production slipped to a 16-month low in March as output from Nigeria dropped to the least in more than three years, both causing rise in Crude prices. This week, we reckon the bull may continue to climb and re-test 98.20 highs. Ultimate height may see 100.00 benchmarks with no surprise if the market bulls rage in from better outlook in US economy.


Gold prices fluctuated last week though the uncertainty of Cyprus situation. Market topped 1613.00 regions initially upon US steady economic data but dropped towards weekend due to stronger Dollar value. The yellow metal closed at 1596.00 levels in light trading on mid-Friday due to New York bank holiday. This week, we reckon the market will be resisted at 1600.00 – 1605.00 areas while draw down is more possible if flight continues to move back into US Treasury assets. Downside target aims at 1560.00 regions.


Silver prices were mainly bearish during last week while trading down from almost 29.00 regions to 27.80 regions. Technically, we reckon the resistance at 28.80 levels will stay resilient and prone to fall should Gold prices sink lower. This week, knee-jerk below 28.00 supports might effectively trigger selling pressure in market and land lower at 27.00 areas should Dollar value rises further to above 83.50 benchmarks.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded in weak demands amid downtrend last week. The weak export data and uncertainties in Euro crisis with Cyprus attributed the decline in FCPO. June contract closed at 2378 while drawing down to the previous support at 2350 levels. This week, we forecast the market still within the tight range from 2350 to 2505. Abandon your long-view if the trend breaks below 2350 supports.

Dar Wong

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

Wong is the founder and Principal Consultant of and holds a professional
qualification in NASD series 3 and 5 approved by National Futures Association (USA).

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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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