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Gold and Oil Markets Report – 18 March 2013

The US Dollar Index hit 7-month high at 83.16 before sliding down on Friday. The Dollar is still considered resilient with strong economic data for US retail sales and industrial production. Weekly jobless claims were down to 332,000 for the week ended 9 March while core Producer Prices gained 0.2 percent in February. Japan confirms Haruhiko Kuroda as the next central bank governor though USD/JPY remains stagnant. However, traders expect more easing policies within weeks and Yen will continue to slide against Dollar.

Crude Oil

WTI Crude prices climbed above 92.50 resistances last week and traded near to 94.00 towards Friday’s closing. This week, we reckon the market will consolidate on stronger sentiment from 92.50 – 95.00 regions if USDX slows down in its bullish trend. WTI Crude may head up in firm sentiment to narrow the spread with Brent Crude in coming week.

Gold

Gold prices were stagnant last week and traded from 1575.00 – 1600.00 regions. The market is showing slight bullishness from the US economic recovery but oblivious to the rising Dollar. This week, we expect the yellow metal may begin to decline if the bulls fail to clear above 1610.00 resistances. Downside potential is open to falls if debt virus from Euroozne recurs or US housing demands make little improvements. The support still lies at 1660.00 levels should the market fall. Abandon your short-view if the trend pierces above 1610.00 resistances.

Silver

Silver prices trades in small range from 28.550 – 29.357 last week. Same to Gold, the market has not clear trend direction until we see more fundamental news in coming week. Technically, we reckon the may either break above 29.40 to see 30.20 targets or drive below 28.00 supports to consolidate at 27.30 areas. The demands for precious metals will depend on the recovery data of US economy and Euro debt solution.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives

moves sideways and traded in small fluctuation last week. The commodity prices in rubber, soybean oil, coffee and cocoa were all affected in bearish trend in early last week due to stronger Dollar. FCPO was also pulled down by weak sentiment until Friday when short-covering stepped in. new active contract month in May delivery closed at 2415 after rollover on Friday. This week, we foresee the market will stay in same projected range from 2350 to 2520 regions.

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’ 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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