MARKET DEVELOPMENT
Commodity Weekly Report 24 November 2013
Commodity Weekly Report 24 November 2013
25/11/2013 (Borneo Post) - The Dow Jones Industrial Average (DJIA) Index made a new historical high last week by going above 16,000 benchmark. The US net long-term portfolio investment inflow was US$25.5 billion in September, which implied funds moving into US equities and currency.
Gold prices fell throughout the week due to fear of tapering stimulus in the coming months but crude prices rebound from anticipation of a recovery in the manufacturing sector.
Euro and pound strengthened from better growth rate in Germany and UK economy. Hence, the market encountered receding yen to 101 levels in the wake of stablising dollar.
Gold prices were bearish last week amid lower inflation rate reflected in consumer and producers prices. In our opinion, the market will continue to unwind if it can be capped under 1,260 resistances.
This week, 1,230 immediate supports will go lower to test 1,210 targets unless positive fundamental news arouse in the market. Abandon your short-view if the market goes above 1,260 as this could reverse the trend up to test 1,275 regions. WTI Crude prices have been suppressed by increasing supplies for past weeks though small rebound was seen last week.
Technically, we foresee the market will see bargain-hunting at 93 levels. However, breaking beneath 93 levels will test the lower support at 91 regions.
In our opinion, if the market closes above 95.2 levels, then it may be poised to recover higher to 98.5 targets.
Crude palm oil futures (FCPO) on Bursa Derivatives hit a 12-month high last week. Speculation for climate changes continue to push CPO prices higher due to shrinking supply.
February contract closed at 2,640 with approximately 42,000 contracts traded on Friday. This week, we foresee the market still has room to climb further with target aimed at 2,750 levels. Support lies at S1 – 2,570 and S2 – 2,500 levels.
Gold prices fell throughout the week due to fear of tapering stimulus in the coming months but crude prices rebound from anticipation of a recovery in the manufacturing sector.
Euro and pound strengthened from better growth rate in Germany and UK economy. Hence, the market encountered receding yen to 101 levels in the wake of stablising dollar.
Gold prices were bearish last week amid lower inflation rate reflected in consumer and producers prices. In our opinion, the market will continue to unwind if it can be capped under 1,260 resistances.
This week, 1,230 immediate supports will go lower to test 1,210 targets unless positive fundamental news arouse in the market. Abandon your short-view if the market goes above 1,260 as this could reverse the trend up to test 1,275 regions. WTI Crude prices have been suppressed by increasing supplies for past weeks though small rebound was seen last week.
Technically, we foresee the market will see bargain-hunting at 93 levels. However, breaking beneath 93 levels will test the lower support at 91 regions.
In our opinion, if the market closes above 95.2 levels, then it may be poised to recover higher to 98.5 targets.
Crude palm oil futures (FCPO) on Bursa Derivatives hit a 12-month high last week. Speculation for climate changes continue to push CPO prices higher due to shrinking supply.
February contract closed at 2,640 with approximately 42,000 contracts traded on Friday. This week, we foresee the market still has room to climb further with target aimed at 2,750 levels. Support lies at S1 – 2,570 and S2 – 2,500 levels.