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Gold and Oil Markets Report–10 June 2013

A guest post written by DAR Wong

The U.S. non-farm payrolls grew 175,000 in May and above expectation. Dow Jones Average Index (DJIA) gained 204 points while Gold fell from flight-out of funds. Crude prices climbed higher from weaker Dollar strength and also due to supply cut in Crude inventories as reported by Energy Information Administration (EIA). Both European Central Bank (ECB) and Bank of England (BOE) held their monetary policies unchanged on last Thursday meeting. ECB President Mario Draghi says policymakers foresee recovery will take place at the end of year in euro-economy.

Crude Oil

WTI Crude prices closed at 96.20 regions on Friday after reversing up from 91.05 bottoms. This week, we reckon the trend may stay strong but will be resisted at 98.00 tops for profit-taking. The range is expected to move from 93.00 – 98.00 levels for potential consolidation. The strength of DJIA on progressive uptrend may lift the Crude prices on prone bullish sentiments.

Gold

Gold prices closed at 1383.00 regions after falling off from last week’s high at 1423.00 areas. Moving forward, we foresee the trend will continue to be bearish and capped below 1400.00 again. Technically speaking, we expect the downtrend to resume and test the 1340.00 supports this week if there is no sudden strong fundamental from major economies. Abandon your short-view and observe the market if the trend breaks above 1400.00 levels.

Silver

Silver prices closed at 21.653 for the week after a shallow pull-up recovery over past 2 weeks. This week, we reckon the market will decline further if Gold trend plunges. Technically, we have identified the first support at S1 – 21.00 but this will most lightly give way to the lower support at S2 – 19.50 regions. We think it is dangerous to pick bottom in Silver prices because the market has risen from 17.50 bottoms since 3 years ago and has never come back to this downside regions.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher on weekly basis form technical recovery and following Crude prices. August delivery contract closed at 2457 after it began bullish on last Wednesday. This week, we expect the trend to escalate higher at 2500 – 2520 tops the follow by some corrective selling. Slowdown is expected after mid-week due to profit-taking while support rests at 2370 regions.

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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