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Gold and Oil Markets Report – 16 Apr 2012

China slows down in growth which has put a cap on the oil prices. Gold prices fell on Friday and snapped the bulls after rising for 6 days. Federal Reserve Chairman Bernanke said the central bank must increase its focus on maintaining financial stability so as to prevent the same recession in 1930s.

Crude Oil

WTI Crude closed at 102.83 on Friday after turning down from last week’s high 104.24. The market is beginning to consolidate while capped by 105.00 resistances. This week, we foresee the trend will be prone bearish and may test 100.00 benchmarks from weaker demands. Slowdown in demands from China will put a lid on oil prices from rising.

Gold

Gold reversed down on Friday and closed at 1657.44 on Friday. The trend is now swinging from 1620.00 to 1680.00 and most likely will be threading in the lower regions from 1620.00 – 1650.00 regions in coming week. Gold is still in middle of correction that will probably sink to lower prices at 1690.00 levels if the first support breaks at S1 – 1620.00 benchmarks.

Silver

Silver prices has been trading sideways last week but reversed down from last week’s high 32.57. The market closed at 31.42 on Friday for the weekend. This week, we expect the trend to re-test the support at 31.00 levels and will likely break lower to 30.00 psychological benchmarks. Bargain hunting will be expected at 30.00 regions rom global investors. Abandon your short-view if the trend pierces above 32.50 resistances.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives fell from 1-year high record 3628 and closed at 3510 on Friday. The market trend declined on profit-taking and began to move into technical digestion. This week, we foresee strong selling interest will emerge with resistance lying at 3580 regions. Downside target is identified at 3410 – 3430 levels but breaking above 3580 might resume the bullish sentiment to challenge last week’s top at 3628.

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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