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Gold and Oil Markets Report – 20 Feb 2012

Gold remained resilient last week and recoiled up after every dip. Crude oil prices rose to 9-month high amid stronger US economic recovery and optimism in Greek bailout. Other oil-based commodities such as soybean and crude palm oil traded higher also on higher demands.

Crude Oil

WTI Crude prices went up 5 days in a row due to optimistic news of Greek new bailout in progress. The market penetrated higher than our expected resistance at 102.00 and reached 104.38 on Friday’s closing. Long traders should beware in case the trend declines below 102.60 in coming week and will eventually to 100.00 benchmark again. Otherwise, the continual bullish factor might reach higher to 106.20 regions before fizzling out.

Gold

Gold prices fluctuated between 1705.30 – 1737.30 regions last week but the reversal forces were strong on the market dips. This week, we are uncertain of the trend until the fundamental force drives market into new direction. Breaking beneath 1705.00 supports will likely to test 1670.00 regions while topside has potential to reach for 1750.00 resistances again. Abandon your short-view if the market violates above 1763.00 levels.

Silver

Silver prices also traded in small range from 32.64 – 34.01 with mild bearishness. This week, the market may follow Gold trend but traders observe the breaking sign beneath EMA200 line at 33.06 as sell signal. The immediate resistance lies at 34.00 levels while downside room may be more possible to see some black candles reaching down to 31.50 regions.

Crude Palm Oil

Crude Palm Oil (CPO) Futures on Bursa Derivatives closed higher mainly pulled up by stronger soybean oil and optimism in resolving Greek debt crisis. The May contract closed at week’s high 3242 levels. We foresee the market will be tricky this week as resistance may emerge at 3270 amid strong buying interest. Breaking this level may surge to new height at 3350 regions. Other the other hand, strengthening dollar may invert commodities prices into technical draw down this week and that will compress CPO prices back to 3140 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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