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Gold and Oil Markets Report – 27 August 2012

Gold and Crude prices continued to be bullish last week due to speculations of US stimulus after positive remarks made by Bernanke. Gold prices rallied up in demands while reacting to weaker dollar from rising sentiments in euro currencies. The Crude was lifted in mid-week from a declining stockpile in US government. The Tropical Storm Issac Gulf of Mexico also put upward pressure in Crude prices just before the market closed for weekend.

Crude Oil

WTI Crude prices were generally bullish and reached 97.00 areas before the weekend settlement. This week, the market may consolidate at 93.50 regions for profit-taking while it is capped at 98.50 resistances. If the bulls take charge again, we shall observe the 98.40 resistances to be pierced before it can run up further to reach 100.00 benchmarks. Fundamental factors will play as important essentials for moving the Crude trend now.

Gold

Gold prices broke above our previous resistance laid at 1622.00 levels and rallied to 1670.00 regions in high demand towards Friday. Early this week, we forecast some small profit-takings may occur and draw down to 1650.00 areas before it may surge again. The support at 1640.00 levels needs to act tough without violation if the trend aims to shot higher. Piercing above 1670.00 areas could travel to 1700.00 levels in coming week if short-covering occurs in panicky amid more positive buying interests.

Silver

Silver prices surged at greater pace and narrowed the spread of Gold/Silver ratio from 57.00 to 54.00 levels throughout the 5 days. The market skipped above 30.00 benchmarks resiliently while entailing the trend of Golden bulls. This week, we expect some initially unwinding at 29.70 levels before the bulls probably run up again. We reckon the target may reach 32.50 areas if the bulls break above 31.00 in near future.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher again in our prediction. The market was pulled up by stronger demands in general food commodities and also in expectation of new stimulus to be implemented by US FED government. The market closed at 3069 after it hit intra-week high 3100. This week, we expect profit-taking to occur and trade sideways from 3000 to 3100 areas. Breaking above 3100 resistances might test next higher resistance at 3170 areas.

Dar Wong

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

Wong is founder and principal consultant of PWForex.com 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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