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Gold and Oil Markets Report – 17 June 2013

A guest post written by DAR Wong

The U.S. job market continues to improve with reducing jobless claims falling in continual streak. The Japanese Yen rises sharply against the Dollar after the Bank of Japan held on to monetary policy unchanged. Market investors expect more stimulus will be added in the execution of “Abeconomics” by the Prime Minister in order to sustain further recovery. Unfortunately, USD/JPY prices have dropped 5 Yen value from around 99.00 to 94.00 regions that caused the Nikkei 225 Stock Average Index to plunge almost 1,200 points throughout the week.

Crude Oil

WTI Crude prices escalated on Friday after the unexpected dip in USDX trend. The market closed at 97.87 but still capped below 98.00 resistances. This week, it is a challenge for the crude prices because piercing above 98.00 resistances may go for the 100.50 targets. However, a reversal in USDX trend upwards will effectively bring the crude trend down back to 94.00 levels. Stay observant for fundamental news as the market is very volatile due to the demands from emerging markets and geo-political unrest in Middle East areas.

Gold

Gold prices reached only 1365.00 regions as intra-week low and closed at 1390.00 regions on Friday. The market recoiled up after International Monetary Fund (IMF) commented a possible stimulus exit by U.S. Federal Reserve be year end. This week, we reckon the market is neutral but may be subjected to either direction based on fundamental factors. Breaking above 1400.00 resistances may re-test the1425.00 high regions while driving below 1375.00 supports again will initiate new bears to 1340.00 as our targets.

Silver

Silver prices traded in consolidation around 21.700 regions last week. The sudden pull-up on Friday to 22.500 tops still reflected a weak sentiment after it was settled at 22.000 levels for the weekend. From technical outlook, the market still carries potential to drive lower in coming week if it breaks below 21.250 and go for 19.50 targets. However, the trend should not protrude higher than 22.500 resistances again lest it will turn into bullishness and climb up to 23.500 regions.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives reversed on Friday in short-covering sentiment. August delivery contract settled at 2438 while volume remains high interest in bullish trend. This week, we reckon the market will continue to itch higher for 2520 targets if the trend of Crude stays afloat. Breaking below 2400 will probably land on 2350 levels.

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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