MARKET DEVELOPMENT
Commodity Weekly Report 20 October 2013
Commodity Weekly Report 20 October 2013
21/10/2013 (Borneo Post) - The US government reopened its operation and saw its dollar weakened to an eight month’s low record.
Gold spiked up to above 1,320 levels while crude saw lacklustre recovery. The increasing inventories of crude oil are seen as supressing the demands and market prices have been lingering at 100 benchmarks last week.
China saw its third quarter (3Q) growth increasing by 7.8 per cent after seeing continuous declines for the past two quarters. Asia stocks climbed on Friday before weekend.
Gold prices shot up on last Thursday from 1,275 to above 1,320 levels after US announced the end of its government shutdown. This week, we reckoned the market will continue to roll higher with support rising to 1,305 regions.
Technically, we expect the bullish performance till 1,345 to 1,350 targets. The weakening dollar is expected to support higher prices of yellow metal. However, beware of it declining to beneath 1,300 benchmarks as this may reverse the market into bearish sentiment.
WTI Crude prices traded in constriction from 101 to 102 ranges on Friday. The market upheaved losses made previously after China reported its growth in 3Q. This week, we foresee the market will be based on 100 supports and might move into technical recovery. Resistance may be tested at R1 – 103 and R2 – 104 depending on fundamental factors.
However, beware of the bears breaking beneath 100 psychological levels as this could initiate new southern sentiment.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives will roll to a new active month in January 2014.
The contract closed at 2,402 on Friday with obvious reduction in open interest. Market is facing strong resistance at 2,430 to 2,450 regions as we predicted last week. Moving forward, we reckoned the market will continue to see resistance at 2,450 levels while support lies at 2,360 areas. However, keep an eye on 2,360 levels as treading below this level could potentially lower grounds to 2,300 levels again.
Gold spiked up to above 1,320 levels while crude saw lacklustre recovery. The increasing inventories of crude oil are seen as supressing the demands and market prices have been lingering at 100 benchmarks last week.
China saw its third quarter (3Q) growth increasing by 7.8 per cent after seeing continuous declines for the past two quarters. Asia stocks climbed on Friday before weekend.
Gold prices shot up on last Thursday from 1,275 to above 1,320 levels after US announced the end of its government shutdown. This week, we reckoned the market will continue to roll higher with support rising to 1,305 regions.
Technically, we expect the bullish performance till 1,345 to 1,350 targets. The weakening dollar is expected to support higher prices of yellow metal. However, beware of it declining to beneath 1,300 benchmarks as this may reverse the market into bearish sentiment.
WTI Crude prices traded in constriction from 101 to 102 ranges on Friday. The market upheaved losses made previously after China reported its growth in 3Q. This week, we foresee the market will be based on 100 supports and might move into technical recovery. Resistance may be tested at R1 – 103 and R2 – 104 depending on fundamental factors.
However, beware of the bears breaking beneath 100 psychological levels as this could initiate new southern sentiment.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives will roll to a new active month in January 2014.
The contract closed at 2,402 on Friday with obvious reduction in open interest. Market is facing strong resistance at 2,430 to 2,450 regions as we predicted last week. Moving forward, we reckoned the market will continue to see resistance at 2,450 levels while support lies at 2,360 areas. However, keep an eye on 2,360 levels as treading below this level could potentially lower grounds to 2,300 levels again.