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Gold and Oil Markets Report – 23 Dec 2013

A guest post written by DAR Wong

The U.S. FED remarked tapering of stimulus during the FOMC meeting held last week. Trimming of USD10 billion on monthly bonds purchase to USD75 billion will begin in January. Dow Jones Industrial Average Index rose to record high towards weekend after the tapering news as market investors reckoned recovery in sight. However, rising Dollar triggered sell-off in Gold prices while WTI Crude recovered to 99.00 regions after supply cut was indicated in weekly EIA report.

Crude Oil

WTI Crude prices recovered last week while sitting on 96.00 support areas. The market is hovering at EMA200 line on day-chart around 98.50 areas. The EIA report on last Wednesday indicated a supply cut of 2.9 million barrels in crude inventories which lifted the buying sentiment across the resistance predicted at 98.50 levels. This week, we foresee the selling pressure will be resilient at 100.00 benchmarks and sliding below 98.50 levels will effectively sink to re-test 96.00 supports.

Gold

Gold prices began to decline soon after FED Chairman Bernanke remarked on trimming stimulus. The market slid to 1186.00 bottoms and closed at 1202.00 on Friday. This week, we expect small pull-up in early week at 1210.00 regions before engaging into bear trend again. On breaking below 1185.0 supports again, we target the bears to test 1150.00 levels in near future if there is no positive fundamental news to lift the yellow metal above 1740.00 strong resistances.

Silver

Silver prices dropped in smaller depth compared to Gold trend and closed at 19.399 on Friday. The market is seen with potential downtrend if the ultimate resistance can stay intact at 20.3000 regions in coming week. Technically, we have identified immediate resistance at 19.70 levels that might be tested in early part of this week. On the downside, observe the immediate support at 18.900 levels as giving way at this level may lead lower to 18.200 areas.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivates traded in sideways throughout the week. The market has mixed sentiments while influenced by weak Ringgit, export data and Dollar strength from U.S. tapering occurred last week. The new active month in March 2014 contract closed at 2587 on Friday. Technically, we foresee the coming week might be uncertain due to the year-end festive seasons amid light trading volume. Traders should observe immediate support and resistance at 2545 and 2620 levels respectively and market may trade within this range this week.

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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