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Gold and Oil Markets Report – 05 Dec 2011

Gold and Crude commodity prices surged last week by reacting to weaker dollar after six US federal banks cut borrowing cost for dollar to ease the Euro debt crisis. Another reason for Crude oil to rise to past 2-weeks high is the growing tension between Iran and the western countries.


Gold prices pulled up to 1762.90 as last week’s high after US non-farm payroll data release. This week, we reckon good selling opportunity to emerge during early week above 1750.00 benchmarks while the trend will potentially revert to bearishness. Downside target may be aimed anywhere from 1700.00 – 1720.00 for weekly range as technical digestion may likely occur to counter previous uptrend. Abandon your short-view if the trend penetrates above 1763.00 levels!


Silver prices faced strong resistance above 33.50 last week and market closed at 32.49 for weekend. The trend seems to be turning down in coming week if it does not penetrate above this resistance benchmark again. We reckon strong selling interest will emerge at 33.00 levels in early week and take down the bulls to 31.00 regions again! Beware of swings as the market is still in technical consolidation phase.

Crude Oil

WTI Crude oil closed above 100.00 benchmarks for the weekend while the bullish strength might be facing exhaustion after having run up for several days. From our technical studies, the bulls may meet strong resistance challenge at above 102.00 levels in coming week. There is high possibility for the trend to return to 97.30 regions as our first support. Abandon your short-view if the market penetrates and settles above 103.40 levels!

Crude Palm Oil

Crude Palm Oil (CPO) Futures on Bursa Derivatives showed weaker sentiment amid price fluctuations in soy prices. Demands for consumption may slow down the CPO prices from lack of manufacturing expansion. On Friday, the most active month in February delivery closed at 3062. This week, we expect the market to trade with the tight range within 3000 and 3160 region. The overall technical trend is still bias to bearish outlook while we favour to capture short trades from topside retracement.

Dar Wong

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

Wong is founder and principal consultant of 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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