28/01/2013 (Borneo Post) - The US Dollar Index (USDX) weakened on Friday af­ter the European Central Bank (ECB) said the borrowing banks would pay back more than forecast in coming week, hence spiking the euro value.

WTI Crude prices have been remaining strong throughout whole week and looks set to climb higher.

The yellow metal dropped in prices while reacting to stronger USD/JPY trend. Thus, we foresee a diversified trend between Gold and Crude in near future that may distort market correlation.

WTI Crude prices traded inside the range from 94.00 to 97.00 levels last week. We reckon the market might skip higher to 100 bench­marks in coming week if the US dollar continues to recede or the crude inventories reduce.

On the other hand, draw down may test 92.50 regions as our ma­jor supports in case profit-taking kicks into market.

Gold prices fell in stricken trend as USD/JPY continued to make new high last week in the past two and a half-year record.

The market dropped about US$40 from the intra-week high at 1,696 levels.

The trend failed to recover on Friday after US new home sales declined in December and disap­pointed the market buyers.

This week, we expect to see some bargain-hunting at 1,650 regions while technical consoli­dation may perform at 1,675 areas if short-covering occurs.

Crude Palm Oil Futures on Bursa Derivatives rebound last week due to short-covering while demands sipped into the market from positive fundamental news in Europe and China.

Market settled at 2,445 for the April delivery contract following a recover in soybean oil.

This week, we reckon the market will recur to weakening trend with resistance emerging at 2,520 levels.

Downside target is likely to test 2,350 bottoms again if market fails to climb above 2,500 levels.