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Gold and Oil Markets Report – 10 September 2012

Gold and Crude prices reversed into bullish sentiment on Friday after the weaker U.S. payrolls stimulated more speculation for another round of Quantitative Easing by Federal Reserves. The August non-farm payrolls reported only 96,000 jobs after the revised 141,000 figures for July. The recent comments by FED Chairman Bernanke in annual meeting held Jackson Hole – Wyoming reiterated the immediate concerns to relieve rising unemployment by injecting more stimuli if job numbers were to remain stagnant.

Crude Oil

WTI Crude prices turned up on Friday but still traded in fatigue sentiment within the 3-week highs below 98.30 levels. The market closed at 96.20 for the weekend while sitting on strong EMA200 support at 93.90 levels. This week, we expect some new buying interests in market and this will probably challenge the 98.30 resistances again to test 100.00 major benchmarks. The announcement of China to build new roads on 2,018 kilometers will inject demands into this market. Abandon your long-view if the trend violates beneath 93.90 supports.


Gold prices surged on Friday and reached 26-week highs while it closed at 1735.00 areas. The market carried very strong bullish sentiments that jumped above 1725.00 resistances in just one session. This week, we target the trend to ascend higher and may reach out for 1775.00 areas before the bulls fizzle out. The support will emerge at 1720.00 – 1725.00 regions for bargain-hunting but short traders might be squeezed further if they do not control their risk factors.


Silver prices closed at 33.57 after rising from a strong support built at 32.00 regions. The Gold/Silver ratio settled at 51.35 and could be heading deeper to 50.00 areas that indicate quick rising Silver than Gold prices in coming week. From technical outlook, the market carries potential to reach above 35.00 – 35.50 areas before the bulls slow down into correction. The first support for coming week will lie at 32.60 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower due to weaker demands and gloomy outlook from euro-debt crisis. However, the Friday’s surge in U.S. markets from wide expectation of imminent stimulus could drive adrenalin into the CPO markets in coming week. The November contract closed at 2927 in slight reversal pattern. This week, we foresee the market may test lower support at 2850 before reversal up but a surge above 2950 in early week could be initiating a new bullish engine to 3050 areas.

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’ 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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