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Gold and Oil Markets Report – 19 Mar 2012

Gold prices traded on the weaker side last week while Crude prices reversed sharply on Friday on speculation of stronger demands in US recovery. The job markets remains firm with steady jobless claims on weekly basis. The FED policymakers said they will keep borrowing rates low till 2014 though no stimulus will be implemented now. Middle East tension quieted down for time being while market investors focus on post effects of Greece bailout.

Crude Oil

WTI Crude closed at 107.80 on Friday after reversing up continually from 103.77 low created on previous day. Technically, we still hold the opinion of market trading inside the range from 104.00 – 110.00 regions while waiting for new fundamental leads to drive new direction. This week, we are probe bias to bullish sentiment with immediate support lying at 106.00 levels while breaking above 108.20 will confirm the uptrend.

Gold

Gold prices have been hovering at 1650.00 regions now though it closed at 1658.70 on Friday. Basically, we interpret the technical trend to thread widely from 1630.00 – 1680.00 regions which may take effect to the coming week. However, we prefer to take short positions on higher retracement until mid-week. Immediate resistance lies at 1666.00 while sinking beneath 1640.00 may indicate imminent fall in market.

Silver

Silver prices have shown bearish sign after it submerged beneath EMA200 line at 33.20 levels last week. The Gold/Silver ratio has been trading above 50.00 levels for many days that indicated weak Silver prices. This week, we expect the trend to consolidate from 31.60 – 33.40 regions. If the market can break below 31.60 after mid-week, we expect lower targets to be reached around 30.50 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives was bullish last week as we forecast. The market attained 3418 on Friday but settled lower at 3398 due to profit taking. Fundamentally, the market was lifted by more short-covering from early last week and lesser production has supported the price jump. This week, we foresee continual gain in market though little room is remaining at the upside potential. Beware of strong resistance at 3450 regions while the technical correction may begin after mid-week and take the market down to 3300 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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