23/12/2013 (Borneo Post) - The US Fed had noted the tapering of stimulus during the Federal Open Market Committee (FOMC) meeting held last week. The trimming of US$10 billion on monthly bonds purchase to US$75 billion will begin in January. Dow Jones Industrial Average Index rose to record high towards the weekend after news tapering were announced as market investors reckoned recovery is in sight. However, rising dollar had triggered sell-off in gold prices while WTI Crude recovered to 99 regions after supply cut was indicated in weekly EIA report.

Gold prices began to decline soon after Fed chairman Bernanke remarked on trimming stimulus. The market slid to 1,186 bottoms and closed at 1,202 on Friday. This week, we expect small pull-up earlier in the week at 1,210 regions before engaging into bear trend again. On breaking below 1,185 supports again, we target the bears to test 1,150 levels in the near future if there is no positive fundamental news to lift the yellow metal above 1,740’s strong resistances.

WTI Crude prices recovered last week and stayed at 96 support areas. The market hovered at EMA200 line on day-chart around 98.5 areas. The EIA report last Wednesday indicated that a supply cut of 2.9 million barrels in crude inventories lifted the buying sentiment across the resistance predicted at 98.5 levels. This week, we foresee the selling pressure will be resilient at 100 benchmarks and sliding below 98.5 levels will effectively re-test 96 supports.

Crude Palm Oil Futures (FCPO) on Bursa Derivates traded in sideways throughout the week. The market saw mixed sentiments, influenced by weak ringgit, while export data and dollar strength from US tapering occurred last week. The new active month in March 2014 contract closed at 2,587 on Friday.