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Gold and Oil Markets Report – 20 May 2013

A guest post written by DAR Wong

The Dow Jones Average Index (DJIA) closed at new historical high on Friday at 15,354 levels. The market was pushed up by leading indicators that showed 0.6 percent gain for the outlook in coming 3-6 months. Japan shows recovery growth in Q1 by 3.5 percent annualized gains and rising Nikkei stocks have been pulled up by weakening Yen. The Eurozone data are pretty neutral due to a consecutive decline in GDP for sixth quarter in Q1. However, exports rose 2.8 percent in March with trade surplus EUR18.7 billion.

Crude Oil

WTI Crude prices rose on Friday due to gains in leading indicators despite new heights in Dollar rise. This week, we predict the trend will be capped by 98.00 resistances while selling interest will begin to emerge at 97.50 areas. Keep a lookout for the weekly Crude oil inventories as the contracting number has been acting as a factor to push up the prices. Technically, we have identified the 94.20 supports to be resilient in countering the bears in case the trend declines.

Gold

Gold prices closed lower on weekly basis at 1355.00 regions. From the chart patterns, we reckon a consolidation will be coming soon as the trend moves inside the range of 1320.00 – 1420.00 regions. However, we expect the market to whipsaw at bottom prices and may test 1300.00 benchmarks before retracing up to immediate resistance at 1380.00 areas. Fundamentally, we expect the yellow metal to face selling pressure for global funds moving out to equity markets.

Silver

Silver prices have come down to the 22.00 support regions though the market closed at 22.224 on Friday. This week, we foresee the trend will consolidate from 22.00 – 23.80 ranges with topside levels very much capped by selling interest. The technical pattern shows a slowdown in bearish sentiment once it reaches 22.00 supports. However, the breaking beneath the 22.00 levels will be very disastrous as there is no more visible technical support until 17.00 areas!

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed on Friday at flat sentiment amid position closing among most traders. The active month has been moved over to August delivery which closed at 2336. Technically, we reckon a likely climb up in coming week if the trend could penetrate above 2380 and aim for 2420 regions. Turning down below 2280 supports will initiate new selling interest to 2200 areas.

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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