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Gold and Oil Markets Report – 11 June 2012

Crude oil prices dipped in mid week after US was downgraded by S&P rating agency to AA+ grades. Manufacturing demands from global major economies has been contracting and China began to cut interest rates by 0.25 percentage point on Friday. Gold prices plunged from USD1640.00/oz – USD1555.00/oz levels and poised to close at 1591.00 regions for the weekend.

Crude Oil

WTI Crude prices were soft throughout the week but pared losses on Friday on hope of Spain being bailout. The market closed at 84.30 on Friday. We remain our view of continual technical correction which will move sideways from recent low regions at 81.00 – 88.00 resistances in coming week. Immediate support lies at 82.00 areas which will probably lift the trend higher this week due to technical recovery. Abandon your long-view if any further negative fundamental news drives into market meltdown again!


Gold prices has formed a flag-pattern in day-chart while waiting for more fundamental driving forces to lead a new breaking trend in near future. This week, we reckon the market will trade from 1550.00 – 1620.00 regions in technical sideway trend. No clue for the eventual direction as the distortion of euro debt crisis, China slowdown and US dollar trend from credit downgrade all have become confusing factors in the market!


Silver prices have been constricted inside a flag-pattern from 27.80 – 29.90 regions in day-chart. Same as Gold chart, we advise trader to wait for opportunity once the new trend breaks beyond either of these extreme levels. In our technical opinion, we prefer to hunt for short entry around 29.50 regions while controlling the risk tightly below 30.00 benchmarks.  The downside potential may open again once the bears charge beneath 27.70 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives continues to plunge down on weekly basis and tested the 2925 supports again on Friday. Market trend was pulled down in worsening euro debt crisis and weakening crude prices. The August contract closed at 2973 with the market turnover around 30,000 contracts. This week, we expect more short-covering to occur and may spur the trend higher to 3050 – 3100 regions. The downside support remains at 2900 – 2925 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’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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