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Gold and Oil Markets Report – 23 July 2012

The crude prices were strong last week from rising tension among geo-political risk between Israel and Iran and Syria unrest. Gold prices fluctuated in sideways as offshore funds increased their buying in U.S. assets in May. Foreign purchasers bought long-term securities at net total USD55 billion while short-term securities net USD101.7 billion. Crop commodities begin to rise amid spreading drought in U.S. weather that affect the growing demands in Asia.

Crude Oil

WTI crude prices bypassed our predicted high 89.00 last week and reached 93.25 peaks before it closed at 91.72 for weekend. In fact, we foresee the resistance will emerge at 94.50 regions for profit-taking though the bulls may continue to charge higher this week. On the downside, the trend may soften down once the technical correction initiates and might land at 89.00 regions again. This week, we favor picking short entry from topside reversal if the market climbs higher towards midweek.

Gold

Gold prices moved inside the range from 1560.00 – 1600.00 regions as we predicted last week. Technically, the trend is still weak due to euro crisis and rising U.S. asset as safe haven. This week, we suspect the trend may begin to breakout in either way as the day-chart consolidation narrows into a dead end. In our opinion, breaking beneath 1560.00 will land lower at 1530.00 levels while piercing above 1600.00 will shoot at 1630.00 regions!

Silver

Silver prices remained uncertain fluctuation like Gold prices since the U.S. dollar index swayed sideway last week. As the market is being led by fundamental movements nowadays, we have identified the hurdles at 26.70 supports and 27.70 resistances which breaking beyond anyone of this level will probably initiate a new direction. Traders have to be patient for observing the trend violation.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives traded sideways as we predicted last week. The support landed at 2990 areas while commodity prices began to firm up due to U.S. dry seasons. The newly month October contract closed at 3042 with market turnover approximately 25,000 contract. This week, we remain the view that support will reinforce at 3000 regions while the upward movement will aim at 3130 – 3170 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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2 Comments to Gold and Oil Markets Report – 23 July 2012

  • Ian's Gravatar Ian
    August 5, 2012 at 9:59 PM | Permalink

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