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Gold and Oil Markets Report – 18 June 2012

Last week, crude oil prices were generally weak due to melting economy in US and European regions. However, the speculation on stimulus packages to be injected in coming week after Greek election might put the bulls back into the market for increasing oil demands. Gold prices stay above 1600.00 benchmarks but has been moving small range. Last Friday, OPEC meeting decided to keep output quota unchanged in preparation of European’s embargo on Iran starting from July 1.

Crude Oil

WTI Crude prices have immediate support lying at 81.00 levels now while selling pressures come down from 85.00 resistances. This week, it is crucial to monitor if there is any stimulus to be injected in European regions for lifting the trend higher. Breaking the R1 – 85.00 will still face challenge in higher resistance at R2 – 87.50 levels. However, beware of the trend turning weaker due to panic selling triggered by traders cutting losses that will head southward to 78.36 for covering a day-gap!

Gold

Gold prices have been resilient above 1600.00 benchmarks but staying at 1620.00 regions without advancing further up. This week, we expect the market to be led by fundamental factors from European regions. Breaking the resistance 1640.00 will climb up to 1670.00 areas while moving back into consolidation of uncertainty will loiter from 1580.00 – 1640.00 regions. No clue for the imminent trend due to too much mixed sentiments in Europe.

Silver

Silver prices have been finding its equilibrium at 28.50 levels while remaining uncertain of its imminent trend. The immediate support and resistance lie at 28.10 and 29.10 levels but we have no clue to which direction it will move in coming week. Technically speaking, driving down past the support will land for 27.30 as our next support while piercing above the aforementioned resistance will attempt 29.80 as our next resistance target.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives persists in weakness after plagued by euro debt crisis and rapid dropping demands. The trend for coming week will be prone to further decline should fundamental weakness continues to cloud the market. The new active month for September contract closed at 2848 on Friday for the first time sinking below 2900 benchmarks in 2012. This week, we maintain our bearish outlook with the resistance capped at 3050 level while downside potential may open at 2750 target before bargain hunting comes into market.

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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