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Gold and Oil Markets Report – 28 May 2012

Crude oil prices stabilize from the recent fall amid stronger U.S. consumer confidence. No agreement has been reached in the meeting on Iran’s nuclear program but WTI Crude prices closed at almost low of last week’s range. Gold prices recover in weak sentiment and very much affected by the declining economies in Euro area.

Crude Oil

WTI Crude prices closed at 90.93 for the weekend while aiming to make technical recovery. This week, we expect the market to be well supported at 89.00 regions and resistance emerges at 95.00 levels. The market will be prone to bullish sentiment with favor to pick bottoms in early week. However, abandon your long-view if the market sinks below 89.00 benchmarks.

Gold

Gold prices threaded sideways last week from 1533.00 -1600.00 regions while moving inside a technical consolidation. Moving forward, we expect the trend to be supported at 1550.00 levels with possibility to climb higher across 1600.00 this week. On hind side, we target the bulls to reach 1620.00 levels once they escalate above 1600.00 benchmarks. Abandon long-view once the trend drives beneath 1550.00 levels.

Silver

Silver prices have found its equilibrium at 28.00 levels and settled at 28.48 for the weekend. We reckon the market will be guarded well with buying interest at 27.50 levels while a possible technical recovery will lift it to 30.50 regions in coming week. The market will entail the Gold in bullish sentiment if dollar strength begins to recede. Abandon your long-view if the trend falls beneath 27.50 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed higher on Friday at 3130 and rebound from the 3000 lows on weekly basis. The market tested last week’s low at 2993 and jumped in recovery as we previously forecast. In this technical recovery, we remain our view that the August contract will continue to hike to 3250 regions while the downside support persists at 3000 levels. 

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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