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Gold and Oil Markets Report – 7 Oct 2013

A guest post written by DAR Wong

The U.S. government shuts down after 17 years and investors reckon this opportunity as bargain hunting season in equities and commodity markets. No report was released on non-farm payroll on Friday due to non-operation in U.S. Commerce Department. Gold prices have been swinging in uncertain sentiment after it recovered from 1277.00 bottoms during middle last week. Crude prices lifted higher on Friday after Tropical Storm Karen swept into Gulf of Mexico and pushed into U.S. Coast.

Crude Oil

WTI Crude prices traded slightly higher on Friday and closed at 103.80 levels. We reckon the market needs to break above 104.60 resistances in coming week in order to initiate new bullish trend. In fact, piercing above 104.60 is a potential sign to reach 108.00 targets again if Tropical Storm Karen persists in the Gulf of Mexico. On the other hand, the ease of war-tension and retreat of “Karen” could trigger further liquidation in market at 99.70 – 100.00 regions.

Gold

Gold prices dropped on Friday as U.S. payroll figure was not released on time. Market investors showed signs of waning confidence as yellow metal shed from 1324.00 regions and closed at 1306.00 levels for the weekend. This week, we foresee the trend may test 1390.00 supports again before rebound. If we could this support to be correct, the price trend might recovery back to 1320.00 regions in consolidating swings. However, protruding above 1320.00 levels is not encouraged as this may reverse the market into bull trend for testing 1350.00 targets!

Silver

Silver prices show strong support at 21.110 on technical chart. The market may initiate an upward rebound in coming week if the market does not settle below 21.000 levels. However, the market needs to break above 22.100 in order to gather bullish strength to reach up to 23.000 targets. The technical aspect is indecisive now while trading narrowly inside 21.000 – 22.100 regions. Driving beneath 21.000 might potentially go down to 19.5000 areas.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives pulled up to closed at 2317 on Friday. The December contract remains as active month with about 15,000 lots traded before weekend. This week, we foresee the market may move into small recovery since the open interest has reduced on Friday. Market may trade from 2260 – 2350 ranges but beware of the bears breaking below 2260 as this may drive to test 2200 supports.

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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