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Gold and Oil Markets Report – 8 July 2013

A guest post written by DAR Wong

After the U.S. non-farm payroll was reported with 195,000 gains in June and better than expected, Gold prices slid again on Friday’s session while Crude prices surged above 103.00 levels. The 2 commodities continued to diversify amid higher USDX value at 2-month high record. Egypt runs into political upheaval that has triggered flight of funds into U.S. assets and higher Dow Jones markets. In our study, this may pose danger sign in the global markets if the diversification spreads further and result in stagflation.

Crude Oil

WTI Crude prices climbed to 103.00 highs on Friday after U.S. jobs reported with higher growth. However, soaring USDX value has also put puzzle on many traders though Egypt’s unrest could be the reason to spike up energy prices. This week, we reckon there could be profit-taking activity in the market if 104.00 – 104.50 resistances are accomplished. Technically, we foresee this resistance area may suppress the market down to 100.00 levels as price correction. Abandon your short-view if the bulls march above 104.50 resistances.

Gold

Gold prices reached 1267.00 regions last week as we predicted before it began to tumble. The market trend fell on Friday after the U.S. payroll released and plunged to below 1210.00 from intraday high 1250.00. This week, we reckon the market will resume weakness while the topside will be capped at 1230.00 resistances. Lookout for mid-week as Federal Reserves will release the FOMC minutes for last month. Breaking below the previous support 1125.00 may head down lower to 1125.00 targets.

Silver

Silver prices declined to 18.188 lows last week as we predicted the fall while closing below 19.00 levels for the weekend. Moving forward, we are wary of new bearish sentiment in Silver trend though we reckon some corrective signs may pull up to 20.500 regions this week. However, beware of violation below the 18.250 supports created last week as this could dampen the demands and lower it to 17.000 areas.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher on Friday ahead of Ramadan month and short-covering due to higher Crude prices. September month settled at 2384 at intra-week’s high as Crude flagged amid rising U.S. payroll figure. However, we foresee the FCPO prices will be capped at 2400 – 2420 areas this week due to limited rooms if Crude is capped at 104.50 resistances. Turning down beneath 2350 equilibrium is a selling sign for driving back to 2300 levels.

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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