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Gold and Oil Markets Report – 26 August 2013

A guest post written by DAR Wong

The annual Jackson Hole meeting in Wyoming held by U.S. FED policymakers began last Friday while market investors still wait patiently for the eventual decision of forthcoming new monetary policies. A research study presented in the meeting showed that the huge bond-buying program has actually been less potent than what the policymakers thought. As tapering of stimulus still looms market, the U.S. bond yield dropped on Friday to 25.81 percent at closing session. However, plunge in new home sales before the weekend triggered wide speculation of maintaining stimulus policy that pushed up Gold prices.

Crude Oil

WTI Crude prices reversed from 103.50 bottoms last week and hovered at 106.50 levels till weekend close. The market is loitering sideways inside the range from 103.00 – 108.50 regions without clear directional trend. The chemical warfare in Syria and Egypt’s civil unrest has put the Crude prices on demand on fear factors. Technically, we do not hold any prone bias trend in market but prefer to monitor the fundamental news in coming weeks. Breaking up 108.50 resistances may climb to 112.00 targets while sinking below 10.50 supports is an indication to see 100.00 levels from unwinding long positions.

Gold

Gold prices closed at 1397.00 region on Friday at 11-week high. The mixed sentiment of U.S. policy meeting caused whipsaws in yellow metal prices but the forthcoming debate in September Congress meeting on raising debt limits will add more choppy trends to market. This week, we foresee the market may climb higher to 1430.00 regions as short-covering emerges. Only breaking below 1370.00 supports will rekindle the southern trend!

Silver

Silver prices surged after Gold and closed at 24.034 on Friday. This week, we reckon some selling pressure at 24.500 – 24.800 regions before correction may occur. However, it will depend on the outcome of new monetary policy from the Jackson Hole meeting to lead the market sentiment. Currently, we have identified the support to rest at 22.500 levels in case some liquidation takes place in early part of this week.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives climbed higher amid weakening Ringgit. Demand triggered from overseas shipment reversed the market trend and initiated short-coverings in market. The November contract closed at 2369 with slight decline in Open Interest on Friday. This week, we foresee the market will remain bullish but strong resistances will be met at 2400 – 2450 regions while falling back may re-test 200 supports.

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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