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Gold and Oil Markets Report – 29 July 2013

A guest post written by DAR Wong

The China PMI manufacturing shows decline for fourth consecutive month in June at 47.7 reading. Asian markets have been supported by gains in German PMI manufacturing and rising new U.S. home sales throughout the week. However, Dow Jones Average Index (DJIA) seems to be fizzling out as it wobbles at 14,550 levels. Yellow metal and Crude closed lower on Friday as USD strength surges amid speculation in U.S. policymakers tapering stimulus after September.

Crude Oil

WTI Crude prices have turned down from recent highs at 108.92 after liquidation for profits occurred in market. Technically, we foresee the market will be slowing down as long traders continue to unwind this week. The range will probably trade from 103.50 – 107.50 areas before a slide follows through. The bears may reach 101.00 in near future if weekly inventories begin to pile up. Last Wednesday, Energy Information Administration (EIA) showed the weekly contraction at minus 2.8 million barrels and very near to forecast.

Gold

Gold prices reached 1340.00 tops as we forecast while the bears took over on Friday. The market closed at 1328.00 regions for the weekend as profit-taking emerged. This week, we foresee the market will continue to be capped at 1335.00 – 1340.00 areas with strong selling resistance. Downside targets are identified at T1 – 1305.00 and T2 – 1270.00 levels if the bears initiate its southern journey. Abandon your short-view if the trend pierces above 1340.00 resistances.

Silver

Silver prices were trading sideways from 20.630 down to 19.646 regions last week. The market illustrated weakness in demand as it closed at 19.969 on Friday. This week, we foresee continual bearish sentiment in market if the demand could not clear above 20.110 resistances. Towards this weekend, there may be possibility to dip at 19.20 targets if the bears drive down the prices following drawdown in Gold prices. Abandon your short-view if the trend penetrates above 20.110 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives broke the 2200 previous supports and tracked lower to 2137 last week. The October delivery month closed at 2178 on Friday amid short-covering. This week, we predict strong selling pressure will ambush at 2200 – 2220 areas, which failing to clear above this region will probably initiate new selling forces after mid-week. Beware if the demand fails to clear above 2200 levels as this may further dip to 2100 bottoms.

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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