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Gold and Oil Markets Report – 29 October 2012

Last week, US dollar strengthened and put lid on general commodity prices down in western markets. Crude oil and Gold markets were receding in weak sentiments amid selling pressures. In Malaysia, Crude Palm Oil rose in firm buying interest ahead of long weekend since Friday was a national market holiday. On Friday, US reported its Gross Domestic Product grew at 2 percent in Q3 above median forecast and reversed up the general commodities.

Crude Oil

WTI Crude prices stood firm at 85.00 supports when the market came down from 91.00 areas last week. In our technical study, the market needs to clear above 88.00 resistances in order to resume the bullish sentiment while testing of lower grounds is possible to occur at 83.50 levels. The increasing inventories in US weekly report and Middle East tension will be main factors in deciding Crude trend. This week, picking up new long trades could be established at 85.00 levels for fast profits at 88.00 areas.

Gold

Gold prices slid in the range from 1730.00 – 1698.00 ranges last week amid strengthening dollar. The market closed at 1710.00 areas on Friday in small rebound after US GDP gain. This week, we reckon the market will move in tight range from 1700.00 – 1730.00 regions in sideways swings. However, beware of another quick test of lower grounds at 1690.00 levels before the market reverses up in short-squeeze.

Silver

Silver prices traded in weak buying interest last week and closed at 32.045 for the weekend. The market is prone to make rebound in coming 2-3 weeks if the support can stand firmly above 31.300 levels. This week, we reckon the trend will turn up after mid-week while the market may setup bear-trap in early week. Upon reversing up, we have identified the correction levels at R1 – 32.700 and R2 – 33.320 where sellers will take profits in these areas.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives climbed higher but in small range last week. Traders are buying the market in cautious sentiment and also reducing volume amid cultural festive seasons. The January contract closed at 2603 on last Thursday ahead of long weekend in thin trades. This week, we foresee the market still has room to ascend to 2750 level while the support area remains resilient at 2500.

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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