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Gold and Oil Markets Report – 13 August 2012

Gold price rallied on Friday due to market expectation of central bank stimulus to be injected. The crude prices rose in early week but faced profit-taking from traders before the weekend close. The slowdown in China’s exports added pressure in crude oil markets as China’s customs bureau reported overseas shipments in July increased 1 percent only from a year earlier after an 11 percent rise in June.

Crude Oil

The WTI crude prices have been well resisted on day-chart by EMA200 resistance at 93.44 areas. This week, we expect the market to hover at this level on Monday but failing to close above this benchmark could initiate a technical correction throughout the whole week. The downside support remains at 89.50 areas which we expect a sideway trend may occur from 89.50 – 93.40 regions. Abandon your short-view if the trend violates above 94.70 levels.

Gold

Gold prices rose on Friday and tested the EMA200 resistance at 1622.00 levels. It is important to track if the bulls can settle above this benchmark on coming Monday. Conquering this hurdle might lift the market interest to 1640.0 regions again from some strong fundamental news. Alternatively, settling below 1605.00 levels will indicate a continual sideway trend for drilling down to 1570.00 supports again by the weekend.

Silver

Silver prices rallied above 28.00 levels on Friday but the sentiment is still in neutral pattern. In our opinion, we still remain the same view as last week that the bull needs to break above 28.50 resistances to initiate a new surge. This week, it is crucial to observe this upward violation otherwise sinking beneath 27.50 will resume weakening trend again.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives went down on softer grounds last week due to slow down in food demands in China. The October contract settled at 2882 on Friday after the market tested the 2840 supports. This week, it will be critical to observe if the 2840 supports will be broken lest the bear will test 2800 supports. Turing up above 2900 will effectively begin a technical recovery to 2970 areas.

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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