Gold and Oil Markets Report – 20 Jun 2011
A guest post written by DAR Wong
Gold prices moved up last week inversely to Crude oil prices mainly due to resurging fear in Greek crisis. Investors returned to yellow metal as safe-haven while expecting another stimulus QE to be released by U.S. Federal Reserve. Chairman Bernanke defended the target ceiling of budget debts should be extended to July and not to be used as a gauge to suppress budget deficits lest deteriorating regularity in financial markets.
Gold prices surged up on Friday after reacting to the reduction in U.S. growth forecast in 2011 by IMF. From technical outlook we foresee a strong resistance currently acting at 1545.00 regions. This week, only fundamental factors can uplift the trend beyond this benchmark while not forgetting another secondary resistance sits at 1553.50 levels. We reckon decline to 1520.00 regions is more potential out of technical consolidation.
Silver prices have been slow and not entailing Gold trend recently. Investors are still staying remote to this market with observation only. Basically, the trend sits in the range 34.00 – 38.00 regions as we forecast few weeks back. However, this week we see a challenge to be suppressed by 34.50 resistances otherwise it may slump beneath 34.40 to attempt 33.00 levels.
WTI crude prices broke the 2 strong supports S1 – 96.20 and S2 -94.20 last week due to impact of Greek debt crisis and delay of resolution by European Union officials. This week, we reckon the market must stand above 93.00 supports o Monday and make recovery otherwise closing below this benchmark may test 90.00 regions as our next major supports. Recently, crude oil prices have become uncertain once any of the major economies showed possible slowdown in manufacturing and demands in growth.
Crude Palm Oil
CPO followed the crude oil plunge on last Thursday after the main energy slid on previous night in Chicago session. This week, we expect the trend to consolidate between 3140 and 3280 regions. Breaking the aforementioned support may attempt 3100 levels. We reckon that crossing above 3250 benchmarks will initiate a new bullish sentiment. Trade cautiously in this uncertain trend by controlling your risk effectively!
This post is contributed by OPF Guest Blogger, DAR Wong.
Wong is the founder and Principal Consultant of PWForex.com and holds a professional
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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