Gold prices surged last week after Fed chairman Bernanke remarked the policymakers will continue to favour lower interest rates and add bonds purchase funds if needed to sustain the recovery till 2014.
The US Dollar Index declined and spiked the yellow metal to a six week high while closing at 1,737.40 for weekend. WTI crude stayed resilient at the 100 benchmark amid strong US data for manufacturing demands for this year.
WTI Crude prices have been trading inside 97.50 – 102 range with bias to stay around the median levels around the 100 benchmark now. This week, we foresee the sentiment may become softer and gradually sink to S1 – 97.50 or re-test S2 – 94.50 regions. This could be a technical correction but beware if the bulls return due to the Iran tension. Abandon your short-view if the market penetrates above 102 levels.
Gold prices surged very rapidly last week and closed with bullish sentiment on Friday. This week we reckon the market will be supported at 1,700 benchmark while targeting to reach 1,755 regions. The resistance at 1,755 levels will be tough levels to challenge since the market came off from there in early December. Traders are advised to control risk by entering from the extreme ends as suggested above.
The active month in April delivery closed at 3,135 after it was capped near to 32,00 resistance last week. For this coming week, we expect the volume to increase and the aforementioned resistance will remain active at 3,200 levels. Market is prone bias to test 3,100 before some profit-taking arise.