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Gold and Oil Markets Report – 6 May 2013

A guest post written by DAR Wong

The U.S. non-farm payroll for April grew 165,000 while unemployment hit 4-year low at 7.5 percent. Dow Jones Average Index (DJIA) crossed above 15,000 benchmarks for the first time amid falling U.S treasuries. Last Thursday, the Federal Reserve released its FOMC statement in maintaining the monthly stimulus of USD85 Billion with no added surprise. In Eurozone, the central bank cut 25 basis points and spiked the stock markets. Hence, we foresee Asia stock markets will be resilient in bullish trend in coming week.

Crude Oil

WTI Crude prices broke above previous resistance at 94.80 levels and reached 96.00 highs on Friday. The better-than-expected U.S. payroll data boosted the stock market as well as commodity prices on high bands. This week, it is hard to predict the probable trend but we reckon the range may move from 92.50 – 97.50 regions. In any case, the continual strength in DJIA trend in climbing higher may help to lift the crude prices on higher demands if U.S. economic recovery persists.

Gold

Gold prices pulled up to 1488.00 regions on Friday and fell by reacting to higher treasuries yields. This week, we reckon the market is preparing to see lower grounds so long as the immediate resistance at 1490.00 levels is not violated. On moving down, we are expecting the downtrend to test 1440.00 as our immediate target and subsequent to 1400.00 as secondary targets. In overall, Gold prices are still very mixed in market but prone to be trading in large consolidation below 1500.00 benchmarks for a while.

Silver

Silver prices are rather weak as the metal has been moving from 23.20 – 24.60 regions. This week, we foresee the market may consolidate in early part of the week before declining towards Friday. The overall sentiment is bearish while it is capped at 24.50 resistances. Weak trend is reinforced by rising Gold/Silver ratio above 60 levels. Downside target may return to 23.00 areas or even lower depending on the leading trend of Gold.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed on low side at 2254 in July delivery contract on Friday. The market was suppressed down by weaker service index in China and dropping Soybean oil demands. This week, the market may draw down further to 2210 before we foresee bargain-hunting emerges. Topside resistance caps at 2340.

Dar Wong

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

Wong is the founder and Principal Consultant of PWForex.com and holds a professional qualification in NASD series 3 and 5 approved by National Futures Association (USA).

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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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