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Gold and Oil Markets Report – 3 June 2013

A guest post written by DAR Wong

The U.S. market is seen with some worries of withdrawal in stimulus program as the 10-year bond yield rises to 2.3 percent. Dow Jones Average Index (DJIA) dropped 208 points on Friday at closing as profit-taking arises. However, China’s Purchasing Managers’ Index rose to 50.8 in May vs. prior month 50.6 and could support the Asia markets in the coming early week. Gold and Crude prices dipped on Friday as USDX reversed in recovery mode.

Crude Oil

WTI Crude prices closed at 91.97 on Friday and below the EMA200 support. This week, the market may initiate a new selling trend with resistance capped at 93.00 – 93.50 regions before taking a slide. The firmness in USDX will affect the demand for commodities including Crude products. Technically, we reckon the support at lie at 90.00 levels for the time being and taking a short trade from the top band may be better plan in the technical patterns.

Gold

Gold prices fell from 1421.91 tops on Friday and closed at 1387.00 regions. This week, we expect the market to top around 1405.00 – 1410.00 areas before sliding again. Technically speaking, the sentiment in market is still weak and subject to more bearish sentiment as 10-year bond yields rise in U.S. and German treasuries. The support will be resting at 1370.00 regions as some bargain-hunting is expected on the way down.

Silver

Silver prices closed at 22.137 for the weekend while following the Gold prices fall. The Gold/Silver ratio topped the 63.312 on Friday and pulled down to close at 62.292 levels. As this correlation narrows down this week, we expect Silver to either climb up faster or slow down in falling than the yellow metal. This week, the market may re-try the 23.500 tops before the bulls slow down. Downside support will emerge at 21.500 levels when the downtrend initiates.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed at 2399 in slight firmness amid sideways trend last week. Technically speaking, we remain our view unchanged by setting the resistance at 2420 regions. Only closing above this level will escalate to 2500 regions amid higher demands. The support lies at 2350 levels but falling beneath here could be negative news for buyers as new selling pressure rekindles.

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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2 Comments to Gold and Oil Markets Report – 3 June 2013

  • Jason Chiew's Gravatar Jason Chiew
    June 3, 2013 at 2:33 PM | Permalink

    Good comment

  • Jason Chiew's Gravatar Jason Chiew
    June 3, 2013 at 2:34 PM | Permalink

    Good comment.TQ.

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