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Gold and Oil Markets Report – 9 Dec 2013

A guest post written by DAR Wong

The U.S. unemployment rate was reported at 7 percent in November and 203,000 jobs were added. On Friday, Gold prices rebound from 1210.00 bottoms to 1240.00 levels after better job figures while Crude prices stayed firm. Last week, European Central Bank committed to low interest rates for extensive period to ensure recovery after cutting to 0.25 percent in November. Bank of England also kept benchmark rates unchanged at 0.5 percent while maintaining bond purchase program at GBP375 billion.

Crude Oil

WTI Crude prices have finally been pushed up by contracting supply after many months of surpluses. The EIA reported weekly inventories at minus 5.6 million barrels of supply cuts that generated demands in market. This week, we foresee the trend will meet some selling pressure at 98.50 levels after it has climbed up from below 92.00 levels over past 1 week. Technically, the Crude prices may drawdown at 95.00 levels for correction this week while moving into consolidation. Abandon your short-view if the bulls march higher and cross above 98.50 resistances.

Gold

Gold prices tested the support at 1210.00 – 1215.00 regions last week and bargain-hunting was seen. This week, we reckon the market might reverse upwards from additional buying interest if short-covering arises. Technically, the market may be prone to ascend to 1255.00 targets while piercing above here could lead the bulls at 1290.00 regions. The yellow metal has strong support from inverse weakening Dollar against both Euro and Pound. Only abandon your long-view if the trend breaks beneath 1210.00 supports.

Silver

Silver prices closed at 19.500 regions for the weekend. Market swung in uncertainty last week but created a support at 18.890 levels. Technically, we reckon if the bears fail to break below 19.000 levels this week, there could be a possibility to see an upward reversal at 20.3000 regions. Short-covering will be expected once the market sellers fail to press the prices down after few attempts.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed higher on Friday with February contract settled at 2667 levels. Approximately 29,000 contracts were traded in the market before closing for the weekend. The bullish factor mainly came from weather concerns and shrinking Ringgit. This week, we reckon the market still maintain its bullish strength while crossing 2700 will ascend to reach 2760 regions. Support remains at 2600 levels which should not be violated.

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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