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Gold and Oil Markets Report – 5 Nov 2012

Last week, US dollar strengthened and put lid on general commodity prices down in western markets. Crude oil and Gold markets were receding in weak sentiments amid selling pressures. In Malaysia, Crude Palm Oil rose in firm buying interest ahead of long weekend since Friday was a national market holiday. On Friday, US reported its Gross Domestic Product grew at 2 percent in Q3 above median forecast and reversed up the general commodities.

Crude Oil

WTI Crude prices closed at 84.74 on low side on Friday after it was plunged down from intraday 87.07 highs. This week, we foresee the trend will short-cover in early week as traders take profits. The market may swing in the range from 82.00 – 84.00 areas but breaking beneath the 82.00 supports will likely test the next lower supports at 82.00 grounds.

Gold

Gold was bearish on Friday after the US payrolls figure was released. Market broke the 1700.00 supports and settled at 1777.00 regions in very bearish sentiment. This week, we reckon the market is temporarily supported at 1675.00 areas while making recovery back to 1690.0 regions is feasible for short-covering profits. Breaking beneath 1765.00 may test the next support at 1665.00 regions if weak sentiment persists in early week.

Silver

Silver prices fell heavily entailing the Gold plunge and closed at 30.892 for the weekend. This week, we reckon the market will be resisted at 31.600 levels with selling pressure continuing to put lid on market. The downside target may reach 30.300 if the bear persists in early coming week. Traders are advised to abandon your long-view if the trend pierces beneath 30.30 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed lower on Friday. The market is still trapped in uncertainty from mixture of fundamentals like reduction export tax imposed by Indonesia and increasing supplies. The January contract closed at 2496 with approximately 28300 contracts. This week, we predict the trend may climb up to 2650 regions, otherwise failing to ascend will fall back to 2400 levels.

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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