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Gold and Oil Markets Report – 17 September 2012

Gold and Crude prices spiked further last week after U.S. Federal Reserve (FED) announced QE3 policy on Thursday. FED Chairman Ben Bernanke said after the FOMC meeting that policymakers will begin a new bond-purchase program at USD40 billion monthly for the mortgage debt instruments. This stimulus aims to loosening unemployment issue and recover housing slowdown. DJIA climbed to new 5-year high above 13,500 since December 2008.

Crude Oil

WTI Crude prices tested above 100.00 benchmarks on Friday. The recent stimulus from China on road project has reversed the Crude trend and further lifted by the U.S. QE3 policy that hammered the U.S. dollar. This week, we reckon the support will lie at 96.00 areas while the topside target could aim at 105.00 regions. However, beware of market exhaustion after mid-week should the demands slow down due to intervention in USDJPY by Japan and fizzling out of euro currency.

Gold

Gold prices jumped from 1720.00 regions to 1770.00 levels after the QE3 announcement. This week, the market may continue to short-squeeze sellers by reaching 1800.00 benchmarks before the bulls get exhausted. The support will emerge at 1740.00 levels with bargain-hunting to build long portfolio. Pay attention to USDX trend for reversing up before the Gold will slow down in its rising trend.

Silver

Silver prices formed a star pattern on Friday close after surging on Thursday evening. The market reached 34.500 regions as we forecast last week and settled around here for the weekend. This week, we expect some more rooms on topside at 36.000 areas before the market buyers become exhausted. Now, the 32.70 levels have turned into strong supports in case market recedes. 

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives turned up on last Friday after FED announced stimulus package on previous evening. The market climbed from intra-week low from 2874 and closed at 2936 for the weekend. The new active month switched to December delivery with overall turnover around 33,000 volumes at market close. This week, we predict a continual ascension in FCPO trend to 3000 levels while support will emerge at 2870 levels.

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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