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Gold and Oil Markets Report – 21 Nov 2011

Commodity prices fell last week due to growing concerns in Euro debt crisis will curb demands in global consumption. WTI Crude fell in New York on speculation that the reversal of the Seaway pipeline will be insufficient to eliminate a glut in the US Midwest. Gold prices slid as both US and UK voiced worrisome of contagion spread of Euro crisis in affecting their growth.


Gold prices had a hard fall from 1795.10 to 1710.10 last week. This week, we forecast the trend will consolidate higher to 1740.00 regions in early week before another down trend will follow through. We expect the bears to tumble to 1765.00 regions by this weekend if there is more negative news from Eurozone. Stay out temporary if the market moves above 1740.00 regions.


Silver prices were sold down to 30.92 entailing the bearish trend of commodities. We reckon the market will consolidate sideways from this bottom to 33.00 regions in coming week while it digests the previous plunge. Traders are reminded to beware of multiple swings during this phase though we remain bearish view aftermath. Stay observant if the market breaks above 33.00 resistance unless it proves to be a false break.

Crude Oil

WTI Crude oil fell off last week’s high 103.40 and closed below 100.00 benchmarks on Friday. We reckon the market will begin to drop in coming week with this same benchmark acting as strong resistance. We expect the trend to reach 95.00 levels before buying interest emerges. Beware of sideways swings after that as market will be prepared to make consolidation patterns for a short while.

Crude Palm Oil

Crude Palm Oil (CPO) Futures on Bursa Derivatives closed higher on weekly basis last week despite the other major commodities were sold down. The bullish trend was a result of tightening supply and rise in overseas demands. The most active month February closed at RM3248 in bullish white candle on Friday. This week, we expect strong supports will emerge at 3140 regions while the resistance is expected to appear at 3300 levels. The overall sentiment is mixed with weaker commodity trend while strong fundamental may push prices higher!

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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1 Comment to Gold and Oil Markets Report – 21 Nov 2011

  • November 22, 2011 at 6:02 PM | Permalink

    Seems like a reversal is predicted for the above commodities with the lighter pre-holidays volume. Totally agreed with your analysis.