Gold and Oil Markets Report – 25 Feb 2013
The USDX value strengthened last week after the FOMC minutes stated the old news of favoring stimulus termination sometime in 2013. Upon the news release, European currencies fell heavily against the Dollar while Gold and WTI Crudes also began to recede in profit liquidation. The US housing market shows momentum in recovery as housing starts and existing homes sales both increased by 0.8 percent and 0.4 percent respectively in January.
WTI Crude plunged middle last week below 95.00 supports and headed down to 92.44 lows on Friday. The Crude market faced profit-taking as the Dollar increased in value. This week, we reckon the market will be supported at 92.00 benchmarks and begin to rebound. Topside resistance lies at 95.00 regions. Abandon your long-view if the market settles below 92.00 for possible further decline.
Gold prices made new 5-week low at 1555.00 regions due to panic selling amid rising Dollar. The market is beginning to consolidate slowly while we foresee the trend could be supported at 1550.00 levels this week. If the trend stabilizes upward, we foresee it may range from 1550.00 to 1600.00 in the coming 2 weeks while trying to search for bargain-hunting. However, abandon your long-view if the market breaks below 1550.00 supports.
Silver prices have been very bearish while falling throughout last week from 30.00 regions to 28.50 regions. This week, the market will follow Gold trend basically in small technical recovery. The downside support lies at 28.00 areas and short-covering may elevate the trend back to 29.50 levels. Abandon your long-view if the trend breaks benath 28.00 supports.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded in small range last week. The May delivery contract closed at 2532 on Friday. This week, we reckon the market range will be trading from 2470 to 2660 ranges while the trend could be mild bullish. However, beware if the market trend settles below 2470 supports as it will go down back to 2400 areas.
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’ 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).
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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