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Gold and Oil Markets Report – 19 August 2013

A guest post written by DAR Wong

The U.S. economy shows jobless claims dropped to 320,000 in the week ended 10 August and lowest record since October 2007. Inflation rose 0.2 percent in July while builder confidence and housing starts indicated rising demand for houses. Egypt’s civil unrest put Crude supply on alert and supported the demands for energy commodities. Gold has been rising as the fear in tapering U.S. stimulus shifted the funds out from stock and bond markets into yellow metal.

Crude Oil

WTI Crude prices have been bullish from fear in Egypt’s riot. The market stayed firm throughout the week and could be trading within the range of 105.00- 109.00 regions in coming week. However, beware if the bulls break up above 109.00 as this may lead the surge to 112.00 regions due to further fundamental push. On the other hand, downside potential may consolidate at 105.00 if situation mitigates. Breaking beneath 105.00 will land at 102.20 areas our next lower support.

Gold

Gold prices reversed up last week as yellow metal moved inversely to weakening DJIA trend. The trend may continue to reach up for 1390.00 regions should the sentiment continue to be short-squeezed. Technically, we reckon the supports have been identified at S1-1353.00 and S2 -1338.00 levels if correction occurs. However, trading above 1370.00 levels is an indication for bullish trend.

Silver

Silver prices were bullish throughout whole week and closed at 23.219 on Friday. This week, we foresee the market will be supported at S1 – 21.950 and S2 – 21.250 if draw down occurs. However, persistent soaring of market could target at 24.300 levels if the bullish sentiment is led by yellow metal in higher demand. Beware of profit-taking once market reaches the topside regions 24.300 – 24.500 in case the bulls may fizzle out very rapidly!

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed on bullish sentiment on Friday as export data showed improvement. The prices for general commodities traded higher last week as stocks and bonds were sold mostly out of fear in stimulus cuts. The November month closed at 2305 on Friday with reducing open interest. This week, we reckon the trend may trade lower at 2250 supports before climbing higher to test 2400 resistances. Breaking beneath 2250 may re-test 2200 supports.

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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