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Gold and Oil Markets Report – 1 July 2013

A guest post written by DAR Wong

Gold and WTI Crude prices diversified last week and instilled confusion to market traders. Basically, the Dollar strengthened and pressed the yellow metal prices down below 1200.00 levels that were last seen in October 2010. However, Crude prices managed to stay afloat due to better forecast in U.S. consumer confidence and durable goods order. Dow Jones markets recovered after mid week with higher pending home sales at 6.7 percent growth in June which was above 6 times the media forecast.

Gold

Gold prices tumbled to 1180.00 lows on Friday and recovered about USD40.00 before it closed for weekend. The market is extremely weak now due to panic selling and fears of widespread stimulus withdrawal initiated by U.S. Federal Reserve. This week, we expect the market to trade in consolidation from 1180.00 – 1260.00 ranges. The trend is rather tricky due to forthcoming monthly payroll figure to be released on coming Friday. Be cautious in case the market disintegrates further as we foresee a possibility to reach 1125.00 areas in near future.

Silver

Silver prices reached 18.207 lows before rebound on last Friday. The market followed Gold prices on late recovery to 19.600 regions before the weekend. We reckon the trend will trade sideways but prone to higher consolidation in early wee. Our Resistance has been identified at 20.650 while downside might test 18.500 levels again in case the negativity rekindles. Plan your selling strategy carefully when the prices perform retracement.

Crude Oil

WTI Crude prices recovered from 93.00 bottoms and to above 97.00 levels on Friday. Technically, the market is seen with strong resistance at 98.50 areas and could be turning down this week for correction. We reckon the bargain-hunting will emerge at 95.00 levels while the trend may trade in rather tight range this week. Lookout for risk management in case the prices drive beyond the expected range of 95.00 – 98.50 bands.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives fell last week with general soft commodity prices amid higher Dollar recovery. September delivery month closed at 2344 on Friday with slight signs of bargain hunting emerging on Friday’s session. This week, we expect the trend may test lower supports at 2300 regions before strong buying interest steps in. However, if Monday could see reversal up above 2380 levels, then we might change our opinion of seeing 2450 as our short-term recovering target.

Dar Wong

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

Wong is the founder and Principal Consultant of PWForex.com 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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