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Gold and Oil Markets Report – 13 May 2013

A guest post written by DAR Wong

The Dow Jones markets and Asia equities have been climbing in bullish sentiments due to improvement in U.S. economy. FED Chairman reiterates of continual stimulus at USD85 Billion monthly and low interest rates to suppress the unemployment rate below 6.5 percent. The USD/JPY rate also crosses above 100.00 benchmarks in 4-year record and weakening Yen helps in lifting stocks in Asia hours. We foresee regional stock markets will continue in bullish trends in coming week.

Crude Oil

WTI Crude prices have behaved in resilient patterns at 96.00 areas. Despite higher Dollar, this market has been staying strong due to tremendous cut in inventory holdings. The Energy Information Agency (EIA) reports the Crude inventory for week ended 4 May contracted to 200,000 barrels and much below the expectation of 2.1 Million barrels. This week, reckon the market will trend form 93.00 – 98.00 ranges with some bullish signs expected to be seen in early week.

Gold

Gold prices have faced selling pressure amid flight to quality and also rising Dollar. This week, we foresee the resistance will act strong at 1450.00 – 1455.00 regions while bears will emerge to liquidate losses from previous tops. As the stock markets climb higher, the yellow metal will descend further to our target prices identified at T1 – 1410.00 and T2 – 1380.00. Abandon your short-view if the market penetrates above 1460.00 levels.

Silver

Silver prices have been trading in narrow range despite the Gold prices melted down. Technically, we foresee the market may do some recovery to 25.50 levels if yellow metal could see a consolidation in early week. Market sentiment is still prone to weakness after every retracement pull up as previous metals are facing liquidation to equities now. The support will remain at 22.50 regions in case the bears sell down again.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives recovers on higher grounds. The July contract closed at 2320 on last Friday amid short-coverings. This week, the trend is likely to stay firm with support coming in at 2250 regions. Topside potential may climb to 2400 levels once the immediate resistance breaks at 2340 areas.

Dar Wong

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

Wong is the founder and Principal Consultant of PWForex.com and holds a professional qualification in NASD series 3 and 5 approved by National Futures Association (USA).

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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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