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Gold and Oil Markets Report – 3 September 2012

Gold and Crude prices both shot up on Friday after the remarks made by FED Chairman Bernanke on favoring imminent stimulus package. In the Jackson Hole annual forum held at Wyoming, Bernanke announced the grave concerns of necessary stimulus in order to cap the jobless rate below 8 percent. Dow Jones market reacted in bullish sentiments from an outlook of weaker US dollar in coming week.

Crude Oil

WTI Crude prices sit nicely above EMA200 support around 94.00 regions last week. The market still engulfs in strong bargain-hunting due to geo-political instability in Syria civil war. This week, we reckon the immediate support will emerge at 95.00 areas with topside target aiming at 100.00 major benchmarks. We expect the market to complete its wave patterns with the remaining room at 100.00 targets before getting exhausted.


Gold prices traded in slow movements on first 4 days of the week but spiked on Friday to 1690.00 regions after Bernanke’s remarks. This week, we maintain our previous forecast that the trend will remain its strong interest in climbing higher. From the technical outlook, we aim at reaching 1720.00 areas once the bulls clear 1700.00 benchmarks. However the trend should not turn below 1675.00 supports lest the bulls lose steam.


Silver prices were well supported at EMA200 line sitting on 31.15 last week. This week, we expect the Silver prices to climb with Gold prices as the Gold/Silver ratio has hit the support bottom at 53.80 and might go sideways from 52.00 – 54.00 areas. From our technical studies, the trend will likely ascend to 33.00 regions with some selling pressures in profit liquidation.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed lower on intra-week range ahead of long weekend for celebrating Merdeka Day. The market settled on last Thursday with November delivery month closed at 3019 after profit-taking. This week, we foresee the market will continue to trade sideways within the range between 2950 and 3100. No clear direction will be seen unless it moves beyond the extremes as mentioned above.

Dar Wong

This post is contributed by OPF Guest Blogger, DAR Wong.

Wong is founder and principal consultant of 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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