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Gold and Oil Markets Report – 24 Dec 2012

The US budget talks turned on Friday as Republican leaders canceled one vote for higher tax on top earners. Stocks declined amid rising dollar. Gold prices recovered in late session while Crude prices remained in low demands. As the European currencies might be receding after X’mas season this week, the decision of USD/JPY trend by the Japan’s new government will be essential to gauge the Gold and Crude direction based on dollar strength.

Crude Oil

WTI Crude prices moved mainly in our predicted range after it has been topped out at 90.54 last week. Fundamentally, a continuation of march-up in USD/JPY in coming week might lift the crude price higher to test 91.50 areas. However, we also foresee slow trading liquidity over this festive season as the trend may consolidate from 87.50 – 90.00 regions. The outcome of market favor from US budget negotiation will directly influence the crude direction due to the dollar strength.


Gold prices fell from 1703.00 top to 1635.00 bottoms last week despite dollar receded. Fundamentally, traders are using the USD/JPY trend to gauge inversely to Gold prices now as the yen market has attracted large volume of players. This week, expect the market to consolidate from 1645.00 – 1660.00 amid low liquidity. The market will resume trading activity in early January while waiting for the outcome for US budget decision.


Silver prices plunged heavily last week due to the Gold/Silver pierced up above strong 54.50 resistances. This week, we foresee market will slow down its decline and begin to consolidate. Technically, the trend may recover to 31.000 regions but could be ambushed by resilient sellers at this benchmark. However, the immediate resistance will lay at 30.50 regions in case the trend short-covers over holiday seasons. Abandon your long-view if the market breaks beneath 29.60 bottoms.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) trading on Bursa Derivatives rebound on Friday and reversed the bearish settlement over past 4 weeks. The bullish sentiment was pulled up by stronger demands in soybean oil from China demands and traders short-covered ahead of holiday seasons. The newly active month in March contract closed at 2409 with bullish pattern on day-chart. This week, we expect slowdown in market volume and the trend may range from 2350 and 2450 levels.

Dar Wong

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

Wong is founder and principal consultant of 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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