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Gold and Oil Markets Report – 30 Jan 2012

Gold prices surged last week after FED Chairman Bernanke remarked the policymakers will continue to favor lower interest rates and add bonds purchase funds if needed to sustain the recovery till 2014. The USD index declined and spiked the yellow metal to 6-week high while closing at 1737.40 for weekend. WTI crude stayed resilient at 100.00 benchmarks amid US strong data for manufacturing demands for this year.

Crude Oil

WTI Crude prices have been trading inside 97.50 – 102.00 range with bias to stay around the median levels around 100.00 benchmarks now. This week, we foresee the sentiment may become softer and gradually sink to S1 – 97.50 or re-test S2 – 94.50 regions. This could be a technical correction but beware if the bulls return due to Iran tension. Abandon your short-view if the market penetrates above 102.00 levels.

Gold

Gold prices surged very rapidly last week and closed with bullish sentiment on Friday. This week we reckon the market will be supported at 1700.00 benchmarks while targeting to reach 1755.00 regions. The resistance at 1755.00 levels will be tough levels to challenge since the market came off from there in early December. Traders are advised to control risk by entering from the extreme ends as suggested above.

Silver

Silver prices were resilient as it closed above the strong resistance 33.68 levels. This week, the market may turn into liquidation only if the trend reverses down below 33.68 again and that will likely test 31.80 supports. Otherwise, a continual march in early week will reach 35.00 regions if pulled up by strength of Gold prices.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on weekly basis due to the lesser demand and short week in Chinese New Year seasons. The active month in April delivery closed at 3135 after it was capped near to 3200 resistance last week. For this coming week, we expect the volume to increase and the aforementioned resistance will remain active at 3200 levels. Market is prone bias to test 3100 before some profit-taking arise.

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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