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Gold and Oil Markets Report – 21 May 2012

The US dollar index surges again and crosses the 80.00 benchmarks after the speculation of Greece’s exit from Eurozone and Spain’s meltdown in bonds auctions instigated new fears in market. Global equities tumble due to flight-out of funds while they search for safe haven in US dollar. Commodity prices remain weak generally across the boards. 

Crude Oil

WTI Crude prices headed down to 90.95 while closing almost near to this low for the weekend. We reckon the buying interest will emerge very soon at 90.00 regions while the current resistances will lie at R1 – 95.00 and R2 – 97.50 areas. The trend of crudes prices are very much affected by recent rising dollar as well as contracting demands spreading from European debt crisis.


Gold prices has short-covering after mid last week and closed at 1592.00 regions. The market made an intra-week low at 1526.00 regions which formed the triple support areas with strong upward reversal. This week, we expect the trend to be supported at 1560.00 in early week while the recovery could climb higher to 1610.00 regions. It will be interesting to find out the new trend direction after the Gold market has completed this technical consolidation.


Silver prices bounced off the low at 26.75 last week and closed at 28.65 for the weekend. The market formed a triple bottom at 26.00 regions with resilient support from bargain-hunting. This week, we reckon the trend will make technical correction with base forming at 27.00 levels while topside targets could return to 30.50 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed lower on Friday with active August month settled at 3096. The market reached 3-month low record due to Euro debt woes and contracting demands from US and China economies. This week, we foresee some buying interest will emerge at 3050 regions which might take the market back to 3250 areas. However, breaking the support could sink lower to 2970 levels. 

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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