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Gold and Oil Markets Report – 1 October 2012

The third quarter closed at fair optimism with better prices in Gold and WTI Crude performance compared to Q2. The US GDP expanded 1.3 percent growth for 3-months ended June and above initial estimate. WTI Crude prices remained in weak demands amid resurging debt crisis but ascended slightly towards weekend due to approval in Spain’s austerity measures.

Crude Oil

WTI Crude recovers from last Wednesday’s bottom at 88.96 levels and hovers around 92.00 regions for the weekend. The market is prone to move from 90.00 – 94.50 in coming week based on technical rebound. We reckon the trend for near-future will depend a lot on US and Europe economy as the mild recovery in US consumer spending and retail sales give some supports to crude prices.


Gold prices stayed resilient last week and rebound to 1780.00 regions after it hit the intra-week bottoms at 1736.00 areas. Though we have correctly predicted the initial part of bearish sentiment to below 1750.00 benchmarks, the market would have recovered due to window-dressing for the Q3 book closing by most major institutions. This week, we remain our technical outlook of the trend softening again and may reach 1725.00 supports. Violating above 1788.50 levels need to abandon your bearish view.


Silver prices had similar trend as Gold market last week by making rapid upward consolidation after Wednesday. The market rebound from 33.311 bottoms to 34.500 areas for the weekend. This week we foresee the market will probably begin to fall after mid-week if it does not penetrate above 35.190 resistances. On sliding, we reckon the trend will test 32.500 supports in near future.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives plunged and was extremely weak last week. The market was dragged down by enlarging Spain’s debt issues and the increasing inventory supplies in Malaysia. On Friday, the December contract closed at 2546 in bearish sentiment with approximately 36,900 contracts. This week, we foresee the market may continue the southern journey and dip below 2500 to test bargain hunting at 2450 regions. The topside recovery carries potential to reach 2700 – 2750 regions. 

Dar Wong

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

Wong is founder and principal consultant of 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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