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Gold and Oil Markets Report – 8 Aug 2011

A guest post written by DAR Wong


Gold prices reached all time high last week above 1680.00 and receded due to decline in U.S. manufacturing. The short-term treasuries yield turned into negative as global investors rushed into U.S. near-termed assets for safe haven. Gold plunged heavily on Thursday after reacting to this news.

We reckon the Gold prices will be constricted within 1640.00 to 1685.00 regions with some profit taking might arise. This week, the market will depend on fundamental factors to drive the market above 1700.00 if Eurozone goes into worst debt debacles. Traders are advised to be cautious when the trend breaks into either direction.


Silver broke above 42.00 benchmarks last week and declined hastily to 38.24 for weekend closing. While the market is stepping into strong support areas now, we foresee there could be upward reversal sign anywhere in 37.00 – 38.00 regions. On the topside, it is highly possible to re-test 40.00 levels in coming week for consolidation before entailing Gold trend again!

Crude Oil

WTI Crude prices had hard fall last week due to slow down in China manufacturing, Eurozone’s deepening crisis and announcement of U.S. will standstill in further easing. WTI Crude has erased all the gains in 2011 while Gold swings in uncertainties as a hedge against recovering U.S. dollar. However, Gold amid new historical high above 1680.00 and attracted global attention to seek high peaks in coming weeks.

WTI Crude prices broke the strong supports 89.50 and tested the lower benchmarks at 86.78 regions. Market went into panic swelling last week after U.S. signed in new bills of cutting USD2.4 trillion budgets in this decade while raising the debt limit through 2012 without definite figures. This week, we expect the market to consolidate back to 90.00 regions while waiting for new fundamental factors to drive a new direction. If the market penetrates beneath 82.80 again, the bears will attempt the second support S2 – 80.27 before the market can steady down in consolidation.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives was down on weekly basis. Market closed with a huge gap at 3056 on Friday and has potential to trade slightly higher in coming week into 3080 – 3100 regions. However, we expect the resistance will act tough at aforementioned areas with great selling interest. If the market plunges again beneath 3020 levels, the next support regions may probably reach down to 2830 before buying interest emerges.

Dar Wong

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

Wong is the founder and Principal Consultant of 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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