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Gold and Oil Markets Report – 26 Mar 2012

The commodity markets traded in sideways last week. Uncertain trend were mainly due to slow down in China’s manufacturing data and Europe’s lethargy. Gold and Crude oil waned in mid trend while waiting for new fundamental strength. Crude prices reversed up USD3 range to 108.00 regions on Friday after reports said Iran will cut supply at 300,000 barrels daily due to tighter sanction.

Crude Oil

WTI Crude prices traded largely inside 104.50 – 108.50 regions last week as we have outlined previously. The market trend is quite neutral now though it may ignite a new bullish engine anytime due to new fundamental strength. This week, we expect the support to remain resilient at 104.50 – 105.00 regions while the trend may possibly re-test the topside 110.00 levels. Market is very sensitive now to trigger an up run anytime due to Gulf tension. Abandon your long-view if the market violates beneath the 104.50 supports.


Gold prices are showing neutral sentiment if it is threading inside 1640.00 – 1660.00 ranges. This week, we speculate some buying interest will emerge and lift the market to 1680.00 regions. Secondary target lays at 1710.00 levels if further strength is injected to market. Currently, the support is building up very strongly at 1640.00 regions and plunging is possible only if this level gives way.


Silver prices weaken to 31.086 low last week until it reversed up on Friday. Gold/Silver ratio met strong resistance above 52.00 levels and turned beneath it which could trigger expanding silver prices in coming week. We foresee the bullish trend will make technical correction and thread from 31.400 – 33.200 ranges. Abandon your long-view if the trend sinks beneath 31.000 supports.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed in bullish trend on Friday at 3426 for the June contract month. The market surprised the short traders but still remained in the bullish channel without breaking higher than our resistance. This week, we persist in our technical opinion of strong resistance may emerge at 3450 – 3470 regions as outlined last week. However, breaking above here may initiate another new bullish trend to 3518 regions. Downside support holds at 3250 if market falls.

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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