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Gold and Oil Markets Report – 13 Jan 2014

A guest post written by DAR Wong and Chong HC

The US non-farm payroll for December surprised the market on Friday by mere 74,000 gains vs. prior month 241,000 jobs created. Unemployment was down to 6.7 percent but economists reckoned more Americans have left the work forces. Bond yields were down on Friday late session as market investors speculated reversal in tapering stimulus. Gold climbed at firm sentiment while Crude prices also recovered due to falling USDX.

Crude Oil

WTI Crude prices have temporary bottomed out at 92.25 and prone to make technical recovery in coming week. By Fibonacci estimate, we predict the trend will reach up to 94.40 as our target. The USDX trend will play vital part in affecting crude prices in addition to the weekly inventory report after mid-week. Topside resistance after R1 – 94.40 will be R2 – 96.00 levels if the market reverses in near future. Abandon your long-view if the market sinks beneath 92.25 levels again!


Gold prices climbed from 1230.00 levels and closed at 1248.00 regions on Friday after US payroll showed pessimism in job market recovery. This week, we foresee the trend will continue to ascend further with support resting at 1230.00 levels. The topside may reach 1275.00 regions before the bulls fizzle out for reversal down. We advise to observe the resurgence in Dow Jones benchmark after mid-week before we can confirm the emerging selling pressure in Gold prices.


Silver prices shot up after Friday payroll and closed at 20.145 levels. This week, the market will be strongly supported at 19.800 levels and we foresee it will test the immediate resistance at 20.500 levels. Breaking above 20.500 resistances will probably climb higher to reach for 21.000 as next potential target. The Gold/Silver ratio is falling and indicates a faster rise may step into buying Silver than Gold prices.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on Friday due to contracting demands from regional markets and pulled down by soybean oil prices. The March contract closed at 2519 with approximately 28,900 contracts while preparing to roll-over this week as January month is going to expire. Technically, we foresee the downtrend will meet some bargain-hunting at 2480 levels. In case of recovery, it may stretch up to 2560 areas if shorties cover back their positions. Abandon your long-view if the selling forces break below 2480 levels.

Dar Wong

This post is contributed by OPF Guest Bloggers, DAR Wong and Chong HC

DAR Wong and Chong HC are the market strategists in APSRI on CPO markets. DAR has 24 years of trading and hedging experiences while HC trades for 6 years and now coaches institutional customers. They can be reached at

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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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