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Gold and Oil Markets Report – 12 Nov 2012

The US election is over with Obama winning his second term for another 4 years as President. However, the tough journey ahead in economy recovery amid rising unemployment, slow housing demands and contracting output remains as challenge for the policymakers. Dollar strength resurges as safe haven but Gold prices also rise in ironical trend from expectation of more stimulus. Crude oil remains in low demands as US stockpile increases.

Crude Oil

WTI Crude oil stays on low demands as US crude supplies increased 1.77 million barrels to 374.8 million barrels in the week ended 3 November. The market trades in 4-month low near to 84.00 supports but strained by 86.00 resistances at Friday’s closing. This week, we predict a technical recovery will lift the crude prices back to 89.00 regions due to short-covering. However, falling below 84.00 supports is a bad omen that may test 81.80 grounds if European debts resurface.

Gold

Gold has been very bullish after the Obama won the Presidential election despite stronger dollar. If the bulls climb above 1740.00 levels, we expect the trend to ascend to 1750.00 resistances before it slides. The support will re-emerge at 1700.00 levels to guard falling trend. Gold will move in large consolidation in coming months with no breakout trend.

Silver

Silver prices recovers from last week’s low 30.660 to above 32.00 levels on Friday’s closing. This week, we reckon a double possibility of market trend in either testing the 31.600 supports or continual ascension to 33.330 targets. The market is overwhelmed by the influence over Obama’s winnings with expanding interest into precious metals despite dollar strengthens.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives continues to fall and closed lower on Friday. Uncertainty in US and Europe manufacturing demands cap the rise of palm oil amid current increasing government stockpiles in Malaysia. The January contract closed at 2316 and near to the lower support at 2250 regions. This week, we foresee the upside potential to be limited at 2400 levels while the market could test downside 2230 targets.

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’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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