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Gold and Oil Markets Report – 23 Sep 2013

A guest post written by DAR Wong

The U.S. Federal Reserve frustrated the market after mid last week with contradictory statement. Chairman Bernanke reinforced on Thursday after FOMC meeting that policymakers will not taper stimulus from the monthly USD85 Billion bond-purchase program. On Friday, the FED Bank of St. Louis President James Bullard cited that policymakers may trim some bond buying in October. Global stocks and majority commodities surged after Bernanke’s statement but plunged on late Friday’s session. Dow Jones fell 185 points at the weekend closing bell and Gold plunged about USD40 ranges.

Crude Oil

WTI Crude prices closed lower on weekly basis at 104.75 due to Bullard’s statement on Friday. The market has been sliding after mid-week due to increasing supply in Libya and ease of war-tension in Syria. This week, we foresee the trend may head down lower to 102.00 regions should the demand continue to wind down. Technically, the resistance will emerge at 107.50 levels if short-covering occurs. Nevertheless, stay observant in any unexpected rise in Syria as this could trigger the Crude demand again!

Gold

Gold prices plunged about USD46 range and closed at 1320.00 regions on Friday. The trading session on Monday will continue to hit Asia equities and other commodities from spill-over effects. Technically, we reckon there will be bargain-hunting at 1310.00 areas if the downfall persists on Monday. The market may be trading sideways from 1310.00 – 1340.00 ranges due to uncertainty and tight fundamental performance. Control your risk in case the trend breaks beyond the aforementioned range.

Silver

Silver prices dipped down to close at 21.757 on Friday closing. The market reveals bearishness in technical patterns and resistance will be strong at 23.000 regions in case retracement steps in. We reckon the market will be supported at 21.400 levels in early week and tend to rebound for short-covering at 22.500 levels. However, beware of breaking beneath 21.200 supports as this may initiate new selling pressure in market.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded in narrow range last week as volume declined. December month settled at 2297 on Friday with bearish outlook. This week, we reckon the China’s manufacturing PMI on Monday will be vital to decide the trend of market amid current uncertainty. Technically speaking, the trend could be heading down to 2200 supports if it is capped under 2320 resistances. However, piercing above 2320 levels will signal re-testing the 2380 resistances if demand recovers.

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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