24/06/2013 (Borneo Post) - Both gold and crude prices suffered sharp fall after the remarks from Bernanke on tapering stimulus. Last Thursday, the Federal Open Market Committee (FOMC) statement following a two-day meeting, stated that the policymakers are looking to unwind the stimulus support sometime in 2014 if economy gets onto recovery track.

China reported continual slide in manufacturing data which added on to the bearish effects in taking the commodity prices down.

Gold prices began the week at 1,391 levels and ended on Friday at 1,296 regions, making more than USD100 plunge throughout the week.

The market is reacting to the contraction of demands in China and stimulus withdrawal from the US policy.

This week, we reckoned the market will trade in sideways earlier in the week with topside target to be tested probably at 1,320 regions before sliding again.

The downside levels may easily create double bottoms at 1,270 levels but breaking beneath here is a sign of unwinding lower.

In this case, observe for 1,240 regions if the 1,270 supports fail.

WTI Crude turned down last week following Bernanke’s remarks and higher USDX trend.

The market travelled down from 99 tops to 93 bottoms which were very close to what we forecasted.

This week, we reckoned the market will trade in the range of 93 supports to 96 levels while some short-covering may occur.

Technically, it is better to pick short-entry from pull up retracement as the market could begin to face lesser demands.

Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed in mixed sentiment while market sentiments were lower from US fundamental news.

The September contract closed at 2,438 in weaker demands after topping at 2,491.

This week, we foresee that the market will be well supported at 2,360 region while resistance remains at 2,500 regions.