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Gold and Oil Markets Report – 21 Oct 2013

A guest post written by DAR Wong

The U.S. government re-opens its operation and Dollar weakens to 8 month’s low record. Gold spikes up to above 1320.00 levels while Crude recovers little. The increasing inventories of Crude oil are suppressing the demands and market prices have been toying at 100.00 benchmarks last week. China picks up 7.8 percent in Q3 growth after past 2 quarters of declines. Asia stocks climbed on Friday before weekend.

Crude Oil

WTI Crude prices traded in constriction from 101.00 – 102.00 ranges on Friday. The market erased losses made on prior day after China reported growth in Q3. This week, we foresee the market will be based on 100.00 supports and might move into technical recovery. Resistance may be tested at R1 – 103.00 and R2 – 104.00 depending on fundamental factors. However, beware of the bears breaking beneath 100.00 psychological levels as this could initiate new southern sentiment.

Gold

Gold prices shot up on last Thursday from 1275.00 to above 1320.00 levels after U.S. announced end of shutdown. This week, we reckon the market will continue to roll higher with support rising at 1305.00 regions. Technically, we expect the bulls to march till 1345.00 – 1350.00 targets. Weakening Dollar will support higher prices of yellow metal. However, beware of it dropping beneath 1300.00 benchmarks as this may reverse the market into bearish sentiment.

Silver

Silver prices pulled up from last week’s low 20.487 and settled almost at near to 22.000 levels for the weekend. Market was supported by weakening Dollar while entailing Gold trend. This week, we reckon the trend will be supported at 21.000 regions and possibly aim higher at 23.6000 areas should the bulls persist. Looking from market sentiment, it is prone to make technical correction as well after past weeks of bearish sentiment.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives was capped under 2450 as predicted last week. The newly rolled over month in January 2014 delivery closed at 2402 on Friday. Resistance will continue to emerge at 2430 – 2450 regions in coming week since a sharp contraction in open interest was discovered on Friday. Technically, we are prone to see downtrend more likely at 2360 targets. However, breaking below 2360 levels will alert bearish sign to test 2300 levels.

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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