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Gold and Oil Markets Report – 22 October 2012

The Crude oil prices were posing to stay above 91.00 supports last week but fell from the intra-week high from 93.50 on Friday. On Friday, the US major companies fell short of target profits in the quarterly report and Dow Jones Average Index (DJIA) dragged down commodity prices following its 205 points decline. Gold prices closed after plunging to 5-week low at 1721.00 areas.

Crude Oil

WTI Crude prices were firm during mid week following the shutdown of Keystone pipeline for repair by TransCanada Corp, disrupting crude supplies to the US Midwest. However, market plunged from 93.50 tops and closed at 90.63 after the DJIA fell. This week, we expect some draw down in early week but bargain hunting may arise at 88.00 areas while 86.00 will act as secondary support to the market. Topside needs to clear above 94.00 resistances before we confirm new bullish trend.

Gold

Gold prices closed at 1721.00 regions after weakening in late session on Friday. This week, we reckon strong resistance will emerge at 1730.00 regions and prone to press down market trend further to 1700.00 benchmarks. However, trading above 1730.00 resistances after mid week will erase this projection and buying interest will return very fast to push the market back to 1750.00 areas.

Silver

Silver prices wound down to 32.064 for the weekend after all commodity prices fell. This week, we reckon the trend will continue to sink in early week with target aimed at 31.30 areas. The immediate resistance lies at 32.60 levels with build-up selling pressure. However, abandon your view if the market climbs above 32.80 resistances which indicate a reversal in uptrend.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives traded between 2417 – 2521 ranges last week amid small demands. The market closed at 2501 in January contract on last Friday with overall turnover about 27,000 volumes traded across the board. This week, we foresee the market will be turning down in early week due to pull-down in commodity prices on Friday’s Chicago session. The expected range is targeted at 2370 – 2520 regions but breaking above 2530 will be bullish sign of continual uptrend.

Dar Wong

This post is contributed by OPF Guest Blogger, DAR Wong.

Wong is founder and principal consultant of PWForex.com 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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