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Gold and Oil Markets Report – 16 Dec 2013

A guest post written by DAR Wong

The U.S. tapering of monetary stimulus rekindled as Treasury yield rose to 2.86 percent on Friday. Last Thursday, Crude inventories reported by EIA were down 10.6 million barrels which pulled up the market prices. Towards the weekend, Gold prices swung in whipsaw amid uncertainty while WTI Crude prices dropped to 1-week low amid profit-taking. On Friday, the Dollar strengthened but reversed the yellow metal prices from 1220.00 bottoms due to short-covering for profits.

Crude Oil

WTI Crude prices turned down from 98.70 tops last week amid profit-taking. This week, we reckon the resistance area will remain active at 98.70 – 99.00 regions while selling pressure may emerge. Technically, the market may drawdown to 94.50 areas if the topside resistance can remain intact. However, keep track on the weekly EIA report which could lead the trend in Crude prices.


Gold prices are in mixed sentiment as the market has failed to penetrate below 1210.00 supports last week. This week, we reckon the initial range might be constricted from 1210.00 – 1270.00 regions in case of short-covering. However, beware of the market sell-down again if tapering of U.S. stimulus renews the shorting fears. The violation below 1210.00 may drive down lower to 1180.00 areas should selling pressure rekindles.


Silver prices closed at 19.690 for the weekend upon small pull up from last week bottom 18.869. The market will follow yellow metal trend and subject to fundamental news for new trend in coming week. In our opinion, the market will conduct small upwards retracement to 20.500 regions with secondary resistance lying at 21.300 levels. Upon driving again, support is identified at 18.830 levels but might be broken in near future if the bears take control again!

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed lower on weekly basis while caused mainly by recent low export figures. Last Friday, the February contract settled at 2561 with approximately 31,000 contracts. This week, we foresee from the technical point of view that the market might push lower to test 2470 which coincides with EMA 200 line on day-chart. Resistance will be capped at 2690 levels.

Dar Wong

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

Wong is the founder and Principal Consultant of 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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