18/11/2013 (Borneo Post) - The current vice chairman of US Federal Reserve Janet Yellen assured that the market will continue its stimulus until robust growth returns to the economy. On Friday, Dow Jones Average Index (DJIA) created new high by surpassing 15,900 benchmarks as 10-year bond yield declined. The US budget deficit narrowed while weekly jobless claims dropped moderately. Crude inventories increased steadily and stayed suppressed on the market prices amid lower demands.

Gold prices saw a recovery last week due to stronger stock prices. Market climbed from 1,260 bottoms to 1,294 tops and hovered near to the topside for the weekend’s closing. The yellow metal has been highly speculative due to the dollar strength and US policymaking. From the statement from Yellen, we expect the trend to ascend to 1,305 regions in coming week before sliding down. Downside potential remains at 1,270 levels and falling beneath here might drive down to 1,250 targets!

WTI Crude prices traded in technical recovery on Friday after dollar weakened against the euro and pound. This week, we reckoned strong selling pressure will emerge at 96 levels and the trend will probably remain at 93 to 96 range. However, we foresee that crude prices may decrease to 90 benchmarks in near future if the weekly inventory report continues to grow in volume.

Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed higher on Friday at 2,609 levels with approximately 43,000 contracts. The active contract will be rolled over to February on Monday with probably continual bullish trend. Weakening ringgit plays an important part in lifting the market prices. This week, we predict the uptrend will continue while support remains at 2,500 regions.