Tweet this

Dealing Desk Hotline

(603)-2181 8848

Gold and Oil Markets Report – 30 July 2012

The USD dollar index dropped after mid last week which lifted the commodity prices from bottom. Both WTI crude prices and Gold recovered from recent bottom in short-covering sentiment. The record rising unemployment in Spain and toppish yields of 5-year bonds over 10-year bonds worried the investors of imminent meltdown in European Union territory. The speculation of stimulus to be added by European Central Bank (ECB) managed to recoil the falling euro and pound which also pulled up the WTI crude for a fourth day.

Crude Oil

The WTI crude prices bounced off 86.86 lows and closed at 90.27 in Friday. This week, we reckon a continual sideways but prone to bullish sentiment will trade from 86.00 – 92.00 regions. On reaching the top as mentioned, we expect some resistance of profit-taking will occur at 93.60 levels which will be good opportunity in picking short-entry. Follow the fundamental news in coming early week and trade cautiously from bottom-up patterns with risk controlled at 86.80 levels.


Gold prices hit a resistance as it closed at 1622.00 levels. This week, we reckon some buying interests will continue in early week but will be put off at 1635.00 regions by profit-takers. Though the market trend is much affected by USD index value now, traders may observe for the Gold prices falling below 1610.00 again which will probably take it down to 1575.00 regions. Abandon your short-view if the trend penetrates above 1635.00 levels!


Silver prices closed at 27.64 on Friday after bounced off 26.63 lows last week. The market is slightly prone to bullish sentiment now as it has lifted above 27.00 benchmarks. From the Gold/Silver ratio which seems to be toppish now at 58.20 regions, we reckon the ratio will in coming week that might push Silver prices higher to test the 28.50 resistances. However, beware of breaking beneath 27.00 supports again in case the negative news resurges in European Union.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives was weak last week but took a reversal up on Friday in short-covering for profits. The October contract closed at 2927 for the weekend after taking a dip at 2880 last week. In our opinion, the downturn of USD index has lifted general commodity prices and might support the FCPO prices in coming week. This week, we reckon the trend will trade from 2880 – 3000 regions. However, beware of dropping beneath 2880 which will test the next support at 2840 levels. 

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).

Sign-up to receive newest posts in your Inbox or RSS

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.

Share and Enjoy:
[] [Digg] [Facebook] [Google] [Mixx] [MySpace] [Twitter] [Windows Live] [Yahoo!] [Email]

Post a Comment

Displayed next to your comments.

Not displayed publicly

If you have a website, link ti it here


OPF reserves the right to delete comments that are snarky, offensive, or off-topic. If in doubt, read our Comments Policy.