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Gold and Oil Markets Report – 27 Feb 2012

Crude oil prices rose last week after Greece was bailout by European Central Bank (ECB) with EUR130 billion financial packages while short-squeezed on the other hand by Iran’s oil supply cut to European countries. WTI Crude prices escalated to above 108.50 levels on Friday and Gold traded in strong sentiments above 1760.00 regions.

Crude Oil

WTI Crude prices will likely to be supported at 105.50 regions in early week before climbing higher. We expect the continual bullish trend to surpass 110.00 benchmarks in near future and aim at 115.00 regions in coming weeks. Beware if the trend reverses down to 103.50 – 105.50 levels since it may become neutral again at this price band.

Gold

Gold prices went up last week but the ratio of escalation compared to Crude prices is smaller in range. This week, we foresee the market will trade from 1760.00 – 1800.00 regions while planning long trades may be better in profitability. Abandon your long-view once the market dips and settles below 1760.00 levels lest new bears will engulf the market trend.

Silver

Silver prices hovered at 35.60 regions and the supports have built up very strong at 34.40 levels. This week, we expect the next immediate resistance will probably emerge at 36.60 levels if Gold could pull up the Silver prices. Gold /Silver ratio is hitting down to 50.00 regions and we expect it to go lower till 48.75 levels in coming week. Thus, Silver has bigger potential to rise compared to a slower Gold up trend.

Crude Palm Oil

Crude Palm Oil (CPO) Futures on Bursa Derivatives closed higher on weekly basis though the patterns seem to be losing the bullish steam. The total volume turnover on Friday was about 19,000 lots with the active month settled at 3276 for May contract. This week, we expect the market to be supported at 3230 while continuing to climb higher to 3360 regions. Crude prices will continue to be the leading market to influence the FCPO prices if the bullish sentiment remains resilient in the energies markets.

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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