21/01/2013 (Borneo Post) - The crude prices surged on Friday after China, second largest crude consumer, announced its Gross Domestic Product (GDP) rose 7.9 per cent in the fourth quarter (4Q) from a year earlier.

On the other hand, the world’s largest exporter – Saudi Arabia re­duced production from its highest output in 30 years and inventories in developed economies were contracting after accumulating in much of 2012. On weekly basis, gold prices closed higher due to receding dollar strength.

WTI crude prices soared last week to above 96 as we expected. Market closed at 95.65 on Friday due to profit taking.

This week, we reckon the mar­ket will continue to climb higher to 98 areas.

Support rests at 92.70 levels with large buying interest if draw down occurs. Keep watching Middle East progress in political changes that may affect oil trend in coming weeks.

Gold prices are supported above EMA200 line at 1,677 while selling pressure emerges strongly at 1,700.

This week, we reckon fun­damental factors will lead the market trend in either direction once the aforementioned levels are broken.

Trader will face tough deci­sion because the outcome of BOJ meeting on Tuesday will affect the dollar strength which will in return influence gold prices.

Crude Palm Oil Futures (FCPO) on Bursa Derivatives stayed sideways and has been underper­forming due to the latest inven­tories piled up and uncertainty fluctuation of the soybean and crude oil.

The new active month in April delivery contract closed at 2399 on Friday.

This week, we foresee the market will remain gloomy if no positive news is injected into market.

Upside resistance still caps at 2,450 areas while the downside support keep at 2,300 level.