24/09/2012 (Borneo Post) - Last week, the slowdown in China’s manufacturing and decline in Japan’s exports put a lid in crude oil prices.

The US oil inventory surged 8.5 million barrels in the week ended September 22 as production in Gulf of Mexico resume after Storm Issac halted.

Gold prices traded at poststimulus high at 1787.50 over two weeks’ market but subjected to profit-taking at closing for the weekend.

WTI Crude prices fell to 90.97 last week unexpectedly especially after Wednesday when China and Japan released their weak data.

This week, we reckon the trend will trade from 91 to 96 while demands will shrink in line with technical correction from the recent top 100.43 levels.

Technically, we expect the trend to be fairly mild in coming few weeks as the effects of market stimulus will gradually be waned.

Gold prices short squeezed on Friday to 1,787.50 levels before it settled on the low-ends at 1,772 regions.

Technically, the market is very prone to correction in coming weeks due to profit-taking as buyers may close books for the month of September.

We expect the trend to be softening this week as the bears will aim at the supports sitting at S1 – 1,750 and S2 – 1,725.

Abandon your short-view if the trend reverses above 1,788 again! Crude Palm Oil Futures (FCPO) on Bursa Derivatives plunged to 2,755 last week.

Malaysia has increased its output and inventories climbed, resulting the tropical oil reaching its lowest price levels since October 2010.

On Friday, the December contract closed at 2,762 and we predict the trend will short-cover in coming week with expected range from 2,750 and 2,900 levels.

Possibility of testing 2,700 areas is high if the bulls do not pull up above 2800 after mid-week.