MARKET DEVELOPMENT
Commodity Weekly Report 8 September 2013
Commodity Weekly Report 8 September 2013
09/09/2013 (Borneo Post) - The US President Obama is still seeking the opinions on the Congress for declaring war against Syria while most members in United Nations (UN) do not openly support the military action. Gold prices saw jitters throughout last week due to uncertain market sentiment. The US non-farm payroll rose 169,000 in August with unemployment rate falling to 7.3 per cent. Expectation of tapering waned among traders as overall recovery still behaves in passive sentiment. Crude prices traded in small correction but still remained high towards weekend at 110 regions.
Gold prices reversed up on Friday as tapering fear waned from lesser August payroll. The market seems to be supported at 1,360 areas and should lay well with buying interest if it is tested again in coming week. Technically, we might interpret the trend to be bullish so long as the support stays well at 1,355 to 1,360 regions. However, the political threats of Syria could easily drive the demands up again to 1,410 targets. Breaking above 1,410 resistances will lead to further test targets at 1,430.
WTI Crude prices jumped from 105.53 lows throughout the week and recovered to 110 areas towards the weekend. The market remains sensitive towards Syria war as traders observe the final decision by President Obama. This week, we reckoned the market will be supported at 107 with much buying interest however the eradication of the warfare fear could dampen the prices below this level. Otherwise, there is huge potential to climb higher to 112 however; it will be challenging to reach the recent high. However, be prepared to see unexpected ascension at 115 should tension arise in the Syrian territory.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed higher on Friday with November contract settling at 2,445. The sentiment was triggered by bargain hunting amid global uncertainty in Syria. This week, we foresee the market will continue to hover at 2,350 to 2,490 ranges while being led by general commodity trends. Breaking above 2,490 may climb higher to 2,550 resistances.
Gold prices reversed up on Friday as tapering fear waned from lesser August payroll. The market seems to be supported at 1,360 areas and should lay well with buying interest if it is tested again in coming week. Technically, we might interpret the trend to be bullish so long as the support stays well at 1,355 to 1,360 regions. However, the political threats of Syria could easily drive the demands up again to 1,410 targets. Breaking above 1,410 resistances will lead to further test targets at 1,430.
WTI Crude prices jumped from 105.53 lows throughout the week and recovered to 110 areas towards the weekend. The market remains sensitive towards Syria war as traders observe the final decision by President Obama. This week, we reckoned the market will be supported at 107 with much buying interest however the eradication of the warfare fear could dampen the prices below this level. Otherwise, there is huge potential to climb higher to 112 however; it will be challenging to reach the recent high. However, be prepared to see unexpected ascension at 115 should tension arise in the Syrian territory.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed higher on Friday with November contract settling at 2,445. The sentiment was triggered by bargain hunting amid global uncertainty in Syria. This week, we foresee the market will continue to hover at 2,350 to 2,490 ranges while being led by general commodity trends. Breaking above 2,490 may climb higher to 2,550 resistances.