Commodity Weekly Report March 10 2013
11/03/2013 (Borneo Post) - The US Dollar Index closed higher on weekly basis at 82.71 after American payroll surged in February by 236,000 and jobless rates sank to 7.7 per cent. Commodity prices faced mixed sentiments on Friday as liquidation rose in the market amid bargain hunting.
Last Thursday, European Central Bank (ECB) and Bank of England held interest rates unchanged at 0.75 per cent and 0.5 per cent respectively.
Euro debt crisis returns to curb demands and growth in Euro area though ECB policymakers had not commented on recovery status and further bailout plans.
Gold prices plunged about US$20 range to 1,561 areas on Friday as the dollar spiked.
The yellow metal recovered all intra-day losses as the market closed at 1,578 regions for weekend. The market sentiment is very neutral with no clue for direction. The trend needs to clear hurdle at 1,587 resistances or below 1,560 supports before new extension can be seen.
Fundamentally, we expect the market to trade in this range for time being until we hear new budget cutting announcement from US leaders.
WTI Crude rebound from intra-week low 89.34 and closed at 91.94 on Friday. This week, we reckon the market will rise to meet 93.00 resistances before profit-taking may occur.
Downside bargain buying is expected to emerge at 90.00 areas as better demands are expected from the US and Japan economies.
Abandon your long-view if the trend sinks beneath 90.00 benchmarks again.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives rebound after mid last week from short-covering in markets. The buying sentiment was still dubious and believed to be speculative since it had not crossed above 1,450 levels.
The April contract closed at 2,449 on Friday and sat on fence of countering forces.
This week, we foresee double edge in market trend as it will most likely trade sideways from 2,360 and 2,520 regions.
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.