Commodity Weekly Report February 3 2013
04/02/2013 (Borneo Post) - The US Payrolls rose 157,000 in January after continual increment from December.
The Federal Reserve policymakers announced after the Federal Market Open Committee (FOMC) meeting on monthly asset-purchase programme at US$85 billion in persistent efforts to aid recovery.
Gold prices whipsawed from 1,652 to 1,683 regions with slightly bearish outlook in the day-chart.
Last week, USDX value slid from almost 80 highs to 79 levels and spiked crude oil prices.
WTI Crude prices continued to stay abode 96 benchmarks throughout while week with weakening dollar strength.
This week, we expect the market to be supported at 96 areas while it will probably reach up to 100 benchmarks as our main aim.
However, the market may swing sideways from 96 to 100 range in near future due to dollar rebound and increasing crude inventories in US government.
Gold prices failed to settle above 1,677 resistances last week which indicated a possibility to drive lower in near future.
The market was ambushed by heavy selling pressures for profit-taking on upward retracement.
This week, we expect the resistance will still act at 1,680 areas while downside potential may be opened to 1,640 targets or lower once the draw down begins.
Crude Palm Oil Futures on Bursa Derivatives traded in short week with only three trading days.
The April delivery month closed at 2,555 on Thursday due to slight profit taking.
The trend has pierced above previous resistances at 2,520 levels which now turned into support regions.
Hence, we reckon the market will be supported at 2,500 to 2,520 areas in coming week and aim higher at 2,630 levels.
Disclaimer: This report is written for general information only. No liability by the writers, publisher or any third party involved in the distribution of this work. Dar Wong and Chong HC are the market strategists in APSRI on CPO markets. Wong has 22 years of trading and hedging experiences while HC traded for four years and now coaches institutional customers. They can be reached at www.traderpromaster.com.