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Gold and Oil Markets Report – 4 March 2013

The US Dollar strengthened last week on better outlook of economic data. Housing and manufacturing both improved while jobless claims were reduced to 334,000 in the week ended 23 February. Europe suffers slowdown when the European Central Bank announced higher unemployment covering 17 nations at increasing 201,000 to 18,998 million in January. UK consumer confidence, housing recovery and loan approvals contracted in January and portrays looming outlook.

Crude Oil

WTI Crude poised to balance at 92.50 levels but closed lower at 91.00 on Friday. In our opinion, the market might find support interest at 89.50 areas this week but resistance will continue to build up at 92.50 regions. The initial retracement in early week could pull up to 92.00 – 925.50 areas for good shorting opportunity. Control your risk management n case the market rises above 92.50 resistances for a reversal up trend.

Gold

Gold prices rose and then plunged last week from 1620.00 to 1764.00 regions. The market settled at 1575.00 levels for the weekend in weak outlook. This week, we reckon the market will be capped at 1600.00 resistances and might drive down to re-test 1560.00 again if Dollar spikes higher. However, beware of swings as the market is getting tough nowadays due to many verbal remarks from policymakers and unexpected Dollar fluctuation within intra-day session.

Silver

Silver prices drove down to 27.934 on Friday before closing higher at 25.578 for weekend. This week, we foresee strong resistance will build up at 29.4000 regions which need to be pierced through before the bullish trend can resume. Downside room may open to 27.00 levels if the aforementioned resistance stays intact. Observe the USDX that will affect the metal prices in coming week.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives showed weakness on Friday as April contract closed at 2367. The market reacted to global slowdown in commodity prices entailing crude and soybean trends after the Dollar spiked higher. Technically, we foresee some technical reversal upward will occur in early part of this week at 2420 areas. However, driving down towards 2300 targets is highly possible should the bears returns to market.

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’ 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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