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Gold and Oil Markets Report – 19 Dec 2011

Commodity prices retreated from mid-week after US FED policymakers said they will not implement any more stimulus plan and no intention to aid euro debt crisis. Dollar surged and hammered the Gold prices to 3-month low. OPEC countries decided to raise daily oil output to 30 million barrels and drove down crude oil prices.

Crude Oil

WTI Crude prices attempted briefly above 100.00 benchmarks and slid after the news from OPEC’s decision and soaring dollar value. The market traded from last week’s high 101.26 down to 92.53 in bearish sentiment while closing near to the low for weekend. This week, we expect the trend to consolidate from 92.50 – 96.00 and slow down gradually towards holiday seasons. Traders are advised to trade cautiously and beware of thin market after coming mid week.


Gold prices tripped badly and reached the support bottom at 1559.90 regions last week. This week, we reckon the market will move into technical consolidation from 1550.00 – 1620.00 regions as trend begins to digest. However, beware if the bears drive the market lower to 1520.00 regions once the aforementioned support is violated!


Silver prices plummeted beneath 30.00 benchmarks and formed a double bottom at 28.00 levels. Same as Gold prices, we expect the Silver to consolidate in coming week while it may trade inside 28.00 – 31.00 regions. We reckon the commodity markets will be weak and slow down till end of December until market interest returns in January.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on weekly basis due the weakness of global commodities arising from stronger US dollar. The most active month moved over to March delivery that closed at 2984 on Friday. This week, we reckon the market trend will move inside the range from 2950 and 3100 while the volume may thin down. Breaking beneath 2950 might drop to 2850 should there be further negative fundamental news!

Dar Wong

This post is contributed by OPF Guest Blogger, DAR Wong.

Wong is founder and principal consultant of 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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