Commodity Weekly Report February 17 2013
18/02/2013 (Borneo Post) - Gold prices declined on Friday as the US Dollar Index (USDX) value recovered from falling trend.
Investors are losing confidence as the US Congress has not bothered to begin the budgeting cuts negotiation as debt ceiling will be reach around month end.
WTI Crude prices fell after US industrial production unexpectedly shrank 0.1 per cent in January and euro-area exports slid the most in five months, raising concern that fuel demand may weaken.
WTI Crude prices have been trading largely from 95.00 to 98.00 ranges while it settled at 96.11 for the weekend.
This week, we foresee the support could be challenged if profit-taking emerges.
The market will be prone bias to selling pressures especially if USDX surges higher.
Breaking below 95.00 supports may drive the trend lower to 93.00 areas once demands contract.
Gold prices melted down on Friday after US factory output shrank in January.
With selling pressure building up on the market, we expect the resistance to be suppressing at 1,620 areas.
On the other hand, continual downfall may drive the prices down to S1 – 1,590 and S2 -1,550 in coming weeks.
Observe the fundamental news that will affect the market weakness from US budget negotiation.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives traded only three market days last week in light volume.
The sentiment was mainly closing of trades in Chinese festive seasons as traders took a break.
This week, we reckon strong support will rest at S1 – 2,480 and S2 – 2,440 while targeting to climb higher to 2,650 areas once the bullish engine ignites.
However, long traders need to be cautious once the market trades in the aforementioned support ranges.
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.