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Gold and Oil Markets Report – 11 March 2013

The US Dollar Index closed higher on weekly basis at 82.71 after American payroll surged in February by 236,000 and jobless rates sank to 7.7 percent. Commodity prices faced mixed sentiments on Friday as liquidation rose in market amid bargain hunting. Last Thursday, European Central Bank and Bank of England held interest rates unchanged at 0.75 percent and 0.5 percent respectively. Euro debt crisis returns to curb demands and growth in Euro area though ECB policymakers have not commented on recovery status and further bailout plans.

Crude Oil

WTI Crude rebound from intra-week low 89.34 and closed at 91.94 on Friday. This week, we reckon the market will rise to meet 93.00 resistances before profit-taking may occur. Downside bargain buying is expected to emerge at 90.00 areas as better demands are expected from US and Japan economies. Abandon your long-view if the trend sinks beneath 90.00 benchmarks again!

Gold

Gold prices plunged about USD20.00 range to 1561.00 areas on Friday as Dollar spiked. The yellow metal recovered all intra-day losses as the market closed at 1578.00 regions for weekend. The market sentiment is very neutral with no clue for direction. The trend needs to clear hurdle at 1587.00 resistances or below 1560.00 supports before new extension can be seen. Fundamentally, we expect the market to trade in this range for time being until we hear new budget cutting announcement from US leaders.

Silver

Silver prices were trading in little range for almost whole week until Friday when it did a swing from 28.340 – 29.250 regions due to Dollar Index spiked. Just like the yellow metal, Silver prices are pretty uncertain and could move either way in coming week. The market needs to drive higher above 29.40 to initiate a new technical recovery and below 28.30 might trigger liquidation in markets. Keep track of US policy and Dollar movement in coming week in-lieu of Silver movements.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives rebound after mid last week from short-covering in markets. The buying sentiment is still dubious and believed to be speculative since it has not crossed above 1450 levels. The April contract closed at 2449 on Friday and sat on fence of countering forces. This week, we foresee double edge in market trend as it will most likely trade sideways from 2360 and 2520 regions.

Dar Wong

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

Wong is founder and principal consultant of PWForex.com 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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