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Gold and Oil Markets Report – 8 October 2012

The US non-farm payroll added 114,000 jobs in September and jobless rate fell to 7.8 percent at lowest record after President Obama took over office in 2009. Gold and WTI Crude prices fell from recent highs after the job figures as traders expect the FED policymakers have been eased from further stimulus. The European Central Bank (ECB) and Bank of England (BOE) both held interest rates unchanged last week and pledged to maintain the bond buying program on target as promised.

Crude Oil

WTI Crude prices have been trading in weak sentiment as US supply exceeds demands. The trend traded from 88.00 – 93.00 regions last week and was pressed down on Friday. Moving forward, we expect the trend to consolidate in early part of the week to 94.00 areas while sinking after mid-week is prone to reach down to 86.00 levels. Any further weakening of crude prices may recede to 84.00 regions toward the coming weekend if demands continue to fall from global manufacturing.

Gold

Gold prices unexpectedly fell from the recent 1795.00 highs to 1772.00 regions after Friday US figures. This week, we expect the market will begin a new fall with immediate resistance set at 1785.00 levels. The downside target is set at 1740.00 areas as our correction levels. However, abandon your short-view if the trend turns up again 1795.00 ultimate resistances again.

Silver

Silver prices fell from 35.1000 regions to 34.224 lows on Friday following Gold trend. The market moved into rapid liquidation when traders reckon FED policymakers will not be pressurized anymore to add stimulus from better jobs growth. This week, we expect the trend to fall till 33.000 areas with bargain hunting while topside is capped at 35.000 resistances. Sentiment will be prone to weakness after mid-week but trading above 35.000 resistances may need to exercise caution in case of fundamental short-squeeze.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives continued to head in south territory and landed at this year low at 2230. The prices were pressed down by increasing stocks pileup and recurring euro debt issues. On Friday, the market rebound significantly on positive outlook on lower tax cut and December contract closed at 2415. This week, we foresee the market will stay at the range bound and 2230 will most likely hold as support. Breaking the 2450 level may propel the market to higher targets.

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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