19/12/2011 (Borneo Post) - Commodity prices retreat­ed from the middle of the week after US Federal Reserve policymakers said they would not implement any more stimulus plans and had no inten­tion to aid the eurodebt crisis.

The US dollar surged and hammered gold prices to a three-month low. WTI Crude prices rose briefly above 100 benchmark but slid after the news of Opec’s decision to raise daily output to 30 million barrels. The market traded from last week’s high at 101.26 and low of 92.53 in bearish sentiment while closing near to the low for weekend.

This week, we expect the trend to consolidate from 92.50 to 96 and will slow down gradually towards the holiday seasons. Traders are advised to trade cautiously and beware of thin market after coming mid-week.

Gold prices tripped badly and reached the support bottom at 1,559.90 regions last week. This week, we reckon the market will move into technical consolidation from 1,550 to 1,620 regions as trend begins to digest.

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on weekly basis due the weakness of global commodities arising from stronger US dollar. The most active month moved over to March delivery that closed at 2,984 on Friday.

This week, we reckon the market trend will move inside the range from 2,950 and 3,100 while the volume may thin down. Breaking beneath 2,950 might drop to 2,850 should there be further negative fundamental news.