04/11/2013 (Borneo Post) - The gold prices fell last week despite US Fed policymakers reaffirming old news of remaining monthly stimulus. In fact, dollar index recovered from an eight-month low at 79.06 bottoms to 80.50 levels which has hammered yellow metal.

The US overall economy receded into slowdown again while crude inventories have been increasing for past few weeks. Crude prices continue to unwind amid weakening demands and close below 95 levels for the weekend.

Gold prices slid from 1,361 tops last week amid rising dollar index. Market closed at 1,310 on Friday in bearish sentiments. This week, we reckoned the trend will be supported at 1,395 regions while consolidation of prices could bring the technical recovery to 1,335 areas. The overall trend has begun to show signs of decreasing unless US lawmakers announce anymore new stimulus to push up the yellow metal. Abandon your long-term view if the prices drop beneath 1,395 supports!

WTI Crude prices closed at US$94.61 per barrel on Friday after plunging from 97 regions on last Wednesday. The inventories were reported at 4.1 billion barrels. This week, we forecast the slowdown in demands in global economy may press the market down to 92.5 levels before a rebound begins. The consolidation may top at 97.5 levels for the time being but bearish sentiments will still engulf the market. Beware of breaking beneath 92.5 supports as this might lead to 90 targets.

Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed at the highest level for this year. Buyers are concerned of weather changes that may deter harvest in coming months. The January 2014 contracts closed at 2,623 level amid rising volume on Friday. Technically, if the market breaks above the major trend, it will likely stay positive in the short term. We are looking at 2,755 targets for this week which the gap was formed on September 21 last year. Immediate support lies at 2,560 levels.