MARKET DEVELOPMENT
Commodity Weekly Report – 14 July 2013
Commodity Weekly Report – 14 July 2013
15/07/2013 (Borneo Post) - Last week, the Fed chairmen Ben S Bernanke spoke after the Federal Open Market Committee (FOMC) minutes that he could foresee financial stimulus as necessary in current economy.
The remarks came after the meeting minutes outlined the possible withdrawal in monthly bonds purchase by other central bank policymakers.
The US dollar index (USDX) sank from a two-month high 84.50 regions into two points lower which caused the euro to spike and the pound went into technical recovery. Gold reversed higher to 1,299 intra-week highs from 1,250 regions and crudes soar passed 107 highs.
Gold prices remained sideways at 1,270 to 1,300 regions while waiting for fundamental factors in coming week.
Basically, the oversold sentiment in gold prices recently and negative swap for sellers have triggered good reasons to short-covering for time bring.
This week, we reckoned the market will be prone to climb higher with support resting at 1,260 levels. Topside targets may aim at 1,320 regions as dollar edges lower.
WTI Crude prices traded higher last week amid shrinking inventories reported weekly by EIA on Wednesday. The stockpile was down by 9.9 million barrels in the week ended July 6.
Egypt’s political unrest is another factor that caused crude to reach higher demands.
Technically, the market had surged for the past three weeks and might probably aim for a correction in coming week.
We reckoned the trend will trade sideways from 102.50 to 107 ranges if profit-taking occured.
However, look out for possible surge due to some expected fundamental strength in case the bulls resurge across 107 resistances, which may aim at 110 areas.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed lower on Friday and broke the recent low.
The price fall occurred due to no support from palm importers amid low demand.
The September contract closed at 2,300 with approximately 48,000 contracts traded on Friday.
This week, we foresee the market might towards a bearish outlook with the first support at 2,230 while reversal up will still be capped at 2,400 resistances.
The remarks came after the meeting minutes outlined the possible withdrawal in monthly bonds purchase by other central bank policymakers.
The US dollar index (USDX) sank from a two-month high 84.50 regions into two points lower which caused the euro to spike and the pound went into technical recovery. Gold reversed higher to 1,299 intra-week highs from 1,250 regions and crudes soar passed 107 highs.
Gold prices remained sideways at 1,270 to 1,300 regions while waiting for fundamental factors in coming week.
Basically, the oversold sentiment in gold prices recently and negative swap for sellers have triggered good reasons to short-covering for time bring.
This week, we reckoned the market will be prone to climb higher with support resting at 1,260 levels. Topside targets may aim at 1,320 regions as dollar edges lower.
WTI Crude prices traded higher last week amid shrinking inventories reported weekly by EIA on Wednesday. The stockpile was down by 9.9 million barrels in the week ended July 6.
Egypt’s political unrest is another factor that caused crude to reach higher demands.
Technically, the market had surged for the past three weeks and might probably aim for a correction in coming week.
We reckoned the trend will trade sideways from 102.50 to 107 ranges if profit-taking occured.
However, look out for possible surge due to some expected fundamental strength in case the bulls resurge across 107 resistances, which may aim at 110 areas.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed lower on Friday and broke the recent low.
The price fall occurred due to no support from palm importers amid low demand.
The September contract closed at 2,300 with approximately 48,000 contracts traded on Friday.
This week, we foresee the market might towards a bearish outlook with the first support at 2,230 while reversal up will still be capped at 2,400 resistances.