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Gold and Oil Markets Report – 15 Aug 2011

A guest post written by DAR Wong

Gold

Gold has been a hotcake to be hedged against inflation since interest rates are not rising on global basis now. The Gold prices touched historical high at 1814.40 during middle last week and did a nosedive. Market had a sharp rise in early week due to flight-off global stocks. However, the yellow metal moved into correction by simmering down to 1723.30 on Friday as Dow Jones stocks recovered.

This week, we foresee Gold prices will trade sideways for a while from 1720.00 – 1770.00 regions. The favor for long trades to be established at aforementioned bottoms with controlled risk. From both fundamental and technical views, there is little chance for market to test lower since the supports act strongly at 1700.00 – 1710.00 levels. But topside resistances at 1770.00 and 1790.00 are prone to be tested again by bullish force!

Silver

Silver is consolidating at 38.00 regions while lagging behind Gold demands. We reckon strong supports will build up in 37.50 – 38.00 regions while upside potential is opened to re-test 40.00 levels. Though silver has been slow recently due to loss of investors’ confidence in the costly margin in futures market, we advise traders to stay observant and trail this instrument as it entails the recovery trend of Gold.

Crude Oil

WTI Crude prices reached 11-month lows at 75.62 last week as global stock tumbled in early week. Towards weekend, market showed a sharp rebound and jumped above 85.00 on Friday’s closing. This week, we reckon the market will consolidate sideways in the range from 80.00 – 88.00 levels with favor to hunt for bargaining prices at bottoms. With the global manufacturing slowing down in U.S., Europe and emerging markets, demands for oil may dwindle towards year-end.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives Crude Palm Oil (CPO) Futures on Bursa Derivatives closed lower on Friday due to global uncertainties. Market was pulled down to 9-month record low at 2917 from the losses in WTI Crude since early last week. However, global slowdown for CPO demands for persisted till Friday despite other crude prices recovered towards weekend.

This week, the market will more likely stay in weakness with topside resistance lying at 3050 regions. We foresee the selling forces are prone to break 2910 supports and go lower to 2830 levels if negatives news continues to impact on investors’ confidence.

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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