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Gold and Oil Markets Report – 23 Jan 2012

Crude prices stayed buoyant in mid-week after the US Department of Energy Information Administration (EIA) reported Crude oil inventories were down 3.4 million barrels for the week ended 13 January. Market was trading in sideways until it fell on Friday following China announced slowdown in manufacturing. Gold prices stayed resilient for whole week amid rumors of strong buying interest from Chinese investors toward Chinese New Year.

Crude Oil

WTI Crude prices traded in the range from 98.00 – 102.25 during last week. Moving forward, we expect the market to begin its technical consolidation with the resistance emerging at 100.00 benchmarks. The trend may likely test at lower grounds around 96.00 supports which we mentioned last week. Overall expectation will be constrained inside this price band for the time being unless new squabbles arise from Iran.

Gold

Gold prices ranged from 1631.00 – 1670.00 but the market pulled up in quick reversal after Friday’s midnight for strong closing at 1662.60. As the market returns to bullish sentiment, it is unclear of the next move as new European fundamentals arising on Monday will take a new trend from Gold prices. From our technical study, an occurrence of downside consolidation will land at 1625.00 in coming week while breaking above 1670.00 may surge to 1690.00 regions!

Silver

Silver prices surged on Friday and closed at 31.88 levels. The trend has been bullish entailing Gold prices. This week, we predict the market will be supported at 30.30 regions while the trend may continue to extend higher to 33.00 levels. The Gold / Silver ratio has been dropping which signals rising Silver prices.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed at 3165 on Friday for the most active month in April. This week, we expect little volatility and movement due to short week amid Chinese New Year. The trend is still well resisted at R1 – 3200 and R2 – 3240 regions while downside room is opened to 3100 levels.

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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