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Gold and Oil Markets Report – 9 July 2012

Commodities turn softer after euro debt woes signal less demands from manufacturing output. Last week, crude prices were supported moderately following the implementation of embargo against Iran in July. However, oil prices were beaten towards weekend while reacting to dropping U.S. payrolls. Gold slid after mid week entailing the euro rate cut for cushioning threats of recession.   

Crude Oil

WTI crude prices came off from Thursday’s peak 88.98 and closed at 84.40 for the weekend. From technical outlook, we expect to see weaker trend in coming week as the bearish sentiment might be carried over from Friday’s pessimism in U.S. payrolls. The market will probably trade from 81.10 – 87.00 regions but prone to southern trend from topside selling pressures in coming early week.

Gold

Gold prices plunged in contracting demands after Thursday and closed at 1583.00 regions on Friday. The diving beneath 1600.00 benchmarks signifies bearish sentiment which might attempt lower grounds at 1550.00 again in near future. This week, we reckon a pull-up may appear initially before the bears aim at 1550.00 levels. Traders are to prepare their risk management for targeting to make new shorting entries once we see 1600.00 prices.

Silver

Silver prices took a plunge on Friday from intraday high 27.81 levels. The market closed at 27.06 levels with high probability to re-test 26.00 supports ion coming week. However, we expect a quick pull-up to occur at 27.50 regions before it slides after mid week. Bearish sentiment has begun in commodity prices again but traders should pay more attention to fundamental news for leading their trends.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives recovered in weekly sentiment due to technical corrections. The September contract closed at 3130 on Friday but we reckon the market might face selling pressure on Monday from carry-cover sentiment from weakening U.S. job data. This week, we foresee topping has occurred at 3150 levels with sellers lining up to 3180 regions. The trend is prone to fall with target set at 3040 areas as our immediate support. 

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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