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Gold and Oil Markets Report – 25 Nov 2013

A guest post written by DAR Wong

The Dow Jones Industrial Average (DJIA) Index made new historical high last week by skipping above 16,000 benchmarks. The U.S. net long-term portfolio investment inflow was USD25.5 billion in September, which implies funds moving into American equities and currency. Gold prices fell throughout the week due to fear of tapering stimulus in coming months but Crude prices bounced from anticipation of recovery manufacturing sectors. Euro and Pound strengthened from better growth rate in Germany and U.K. economy. Hence, the market encountered receding Yen to 101.00 levels in the wake of balancing Dollar rise.

Crude Oil

WTI Crude prices have been suppressed by increasing supplies for past weeks though small rebound was seen last week. Technically, we foresee the market will see bargain-hunting at 93.00 levels. However, breaking beneath 93.00 levels will drive lower to test the lower support at 91.00 regions. In our opinion, if the market closes above 95.20 levels, then it may be poised to recover higher by aiming at 98.50 targets.

Gold

Gold prices were bearish last week amid lower inflation rate reflected in consumer and producers prices. In our opinion, the market will continue to unwind if it can be capped under 1260.00 resistances. This week, the drilling beneath 1230.00 immediate supports will go lower to test 1210.00 targets unless positive fundamental news arouse in market. Abandon your short-view if the market pierces above 1260.00 as this could reverse the trend up to test 1275.00 regions.

Silver

Silver prices broke below 20.000 benchmarks after following down trend in Gold prices. The market is prone to drop further in coming week if it could not elevate above 20.500 levels. Technically, we reckon the plunge might go deeper at 19.2000 targets in early this week. The Gold/Silver ratio is rather high at 62.5000 levels and may be receding this week that will trigger the Gold decline faster than Silver trend.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives hit 12-month high record last week. Speculation for climate changes continues to push CPO prices higher due to shrinking supply. February contract closed at 2640 with approximately 42,000 contracts traded on Friday. This week, we foresee the market still has room to climb further with target aimed at 2750 levels. Support lies at S1 – 2570 and S2 – 2500 levels.

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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