MARKET DEVELOPMENT
Commodity Weekly Report 25 August 2013
Commodity Weekly Report 25 August 2013
26/08/2013 (Borneo Post) - The annual Jackson Hole meeting in Wyoming held by US Fed policymakers began last Friday while market investors wait for the eventual decision of forthcoming new monetary policies.
A research study presented in the meeting showed that the huge bond-buying programme has been less potent than what the policymakers thought.
As tapering of stimulus still looms, the US bond yield dropped on Friday to 25.81 per cent at closing session. However, a decrease in new home sales before the weekend triggered wide speculation of maintaining stimulus policy that pushed up gold prices.
Gold prices closed at 1,397 region on Friday at 11-week high. The mixed sentiment of US policy meeting caused yellow metal prices to whipsaw but the forthcoming debate in September Congress meeting on raising debt limits will add a more choppy trend to market. This week, we foresee the market may climb higher to 1,430 regions as short-covering emerges. Only breaking below 1,370 supports will rekindle the southern trend.
WTI Crude prices rebounded from 103.50 bottoms last week and hovered at 106.50 levels untill the weekend’s close. The market remained sideways within the range from 103 to 108.50 regions without clear directional trend. The chemical warfare in Syria and Egypt’s civil unrest has put the crude prices on demand on fear factors. Technically, we do not hold any prone bias trend in market but prefer to monitor the fundamental news in coming weeks. Breaking up 108.50 resistances may climb to 112 targets while sinking below 10.50 supports is an indication to see 100 levels from unwinding long positions.
Crude palm oil futures (FCPO) on Bursa Derivatives closed higher on a weekly basis due to stronger demand. Weakening of ringgit had spurred exports and trading volume remained steady throughout the week. The November contract closed at 2,369 with approximately 30,800 lots on Friday. This week, we foresee the market will remain bullish with above targets set at T1 – 2,400 and T2 – 2,450 levels. Support lies at S1 – 2,300 and S21 – 2,250 regions.
A research study presented in the meeting showed that the huge bond-buying programme has been less potent than what the policymakers thought.
As tapering of stimulus still looms, the US bond yield dropped on Friday to 25.81 per cent at closing session. However, a decrease in new home sales before the weekend triggered wide speculation of maintaining stimulus policy that pushed up gold prices.
Gold prices closed at 1,397 region on Friday at 11-week high. The mixed sentiment of US policy meeting caused yellow metal prices to whipsaw but the forthcoming debate in September Congress meeting on raising debt limits will add a more choppy trend to market. This week, we foresee the market may climb higher to 1,430 regions as short-covering emerges. Only breaking below 1,370 supports will rekindle the southern trend.
WTI Crude prices rebounded from 103.50 bottoms last week and hovered at 106.50 levels untill the weekend’s close. The market remained sideways within the range from 103 to 108.50 regions without clear directional trend. The chemical warfare in Syria and Egypt’s civil unrest has put the crude prices on demand on fear factors. Technically, we do not hold any prone bias trend in market but prefer to monitor the fundamental news in coming weeks. Breaking up 108.50 resistances may climb to 112 targets while sinking below 10.50 supports is an indication to see 100 levels from unwinding long positions.
Crude palm oil futures (FCPO) on Bursa Derivatives closed higher on a weekly basis due to stronger demand. Weakening of ringgit had spurred exports and trading volume remained steady throughout the week. The November contract closed at 2,369 with approximately 30,800 lots on Friday. This week, we foresee the market will remain bullish with above targets set at T1 – 2,400 and T2 – 2,450 levels. Support lies at S1 – 2,300 and S21 – 2,250 regions.