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Gold and Oil Markets Report – 16 July 2012

The minutes released from last US FOMC meeting signaled no stimulus and punctured investors’ confidence. The DJIA stocks and commodities were softened last week until they recovered on Friday by technical short-covering. Market analysts reckon the dry weather in US has pushed the commodity demands higher while the embargo on Iran’s oil exports begins to lift the oil prices.

Crude Oil

WTI crude prices came up from last week’s low 83.65 and closed at 87.01 on Friday. The cut down in supply from Iran’s exports and simultaneous slowdown in China’s manufacturing are putting a fight in the oil prices. Technically, we foresee the technical bulls may charge up to 89.00 regions in coming week from continual strength carried over from last Friday. The new support will emerge at 85.00 levels with consolidation forces formed previously.


Gold prices dipped to 1554.00 regions before it recoiled to 1590.00 on Friday. With unchanged views, we reckon the market forces to trade inside 1550.00 – 1600.00 range while breaking above 1600.00 benchmarks will loiter up to 1625.00 regions. In our study, the 1600.00 benchmarks have become decisive support cum resistance so long as the trend trades largely from 1550.00 – 1625.00 range. Observe the fundamental factors that will lead the direction.


Silver prices closed at 27.22 on Friday and sat on support line. This week, we shall observe the 27.00 benchmarks for controlling risk while aiming to skip higher to 28.50 regions. Breaking 27.00 support will probably head down to test the bargain-hunting levels at 26.40 areas.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives reversed up on Friday with other commodities amid profit-taking. The September delivery month closed at 3065 with volume reaching 33,000 turnover in overall market. The general trend for whole last week showed weakness while still affected by China’s slowdown. Technically, we expect the market to trade sideways in consolidate for coming week in the range from 3000 – 3160 levels. A breakout below 3000 supports may test 2940 regions.

Dar Wong

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

Wong is founder and principal consultant of 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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