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Gold and Oil Markets Report – 27 May 2013

A guest post written by DAR Wong

The U.S. reports recovery in new home sales and existing home sales for April that lifted the market sentiment. FED Chairman Ben S. Bernanke says a premature withdrawal in stimulus will hamper overall recovery and plummets USDX from 34-month high at 84.49 tops. After mid last week, Gold prices reversed up while Crude traders short covered upon his statement. Amid some corrections in stock markets, Asia equities have been affected more due to slowdown in China’s manufacturing for April that declined for the first time in 7 months.

Crude Oil

WTI Crude prices took a quick dip below 92.30 last week that was in-line with EMA200 supports. On Thursday, the market bounced up from 92.21 bottoms after Bernanke’s statement and eventually closed at 93.90 for the weekend,. This week, we reckon the market is lightly prone to be bullish with support rising at 93.00 regions. From our study, the trend may make short-term recovery at R1 – 94.80 or even R2 – 95.60 while depending on the market news of demands in energies.

Gold

Gold prices have been trying to poise its balance between 1360.00 – 1410.00 regions while waiting for fundamental influence. This week, we are neutral to the probable trend but pay attention to a weaker USDX that may float the yellow metal to test 1410.00 resistances again. We reckon some demands will arise in Gold due to minor liquidations in stock markets over next few days. However, the overall trend is still prone to weakness after this consolidating phase

Silver

Silver prices closed at 22.387 on Friday after making 31-month low at 21.193 last week. Moving forward, we reckon the trend will poise to be firmer while supported at 22.000 regions. Technically, we target the bulls to recover at 24.000 – 24.500 areas should Gold re-test 1410.00 highs. Silver has been plunging faster than Gold in past 2 months and will recover also at higher rate in order to weaken the Gold/Silver ration back to 60.00 levels from current 61.80 regions.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives was closed on Friday for Wesak Day while having a short week. The August contract recovered moderately and closed at 2370 as general commodities were firmer. This week, we forecast a continual uptrend may follow till 2420 targets with support resting at 2300. There is a tendency to test 2500 levels in case the market fundamentals become strong.

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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1 Comment to Gold and Oil Markets Report – 27 May 2013

  • June 6, 2013 at 11:25 PM | Permalink

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