Commodity Weekly Report October 7 2012

The US non-farm payroll added 114,000 jobs in September and jobless rate fell to 7.8 per cent at lowest record after President Obama took over office in 2009.

Gold and WTI Crude prices fell from recent highs after the job figures as traders expected the FED policymakers have decided to ease further stimulus.

The European Central Bank (ECB) and Bank of England (BOE) both held interest rates unchanged last week and pledged to maintain the bond buying program on target as promised.

Gold prices unexpectedly fell from the recent 1,795 highs to 1,772 regions after Friday US fi gures.

This week, we expect the market will begin a new fall with immediate resistance set at 1,785 levels.

The downside target is set at 1,740 areas as our correction levels.

However, abandon your shortview if the trend turns up again 1,795 ultimate resistances again.

WTI Crude prices have been trading in weak sentiment as US supply exceeds demands.

The trend traded from 88 to 93 regions last week and was pressed down on Friday.

Moving forward, we expect the trend to consolidate in early part of the week to 94 areas while sinking after mid-week is prone to reach down to 86 levels.

Any further weakening of crude prices may recede to 84 regions toward the coming weekend if demands continue to fall from global manufacturing.

Crude Palm Oil Futures (FCPO) on Bursa Derivatives rebounded from a 36-month low 2,230 last week and closed at 2,415.

Demand was still low but the trend reversed up from technical correction due to short-covering for profits.

This week, we foresee the market will continue to climb higher to our two targets set at R1 – 25,30 and R2 – 2,680 areas.

However, any further drilling down of selling pressures beneath 2,250 might attempt 2,100 regions as our projected bottoms.

Disclaimer: This report is written for general information only. No liability by the writers, publisher or any third party involved in the distribution of this work. Dar Wong and Chong HC are the market strategists in APSRI on CPO markets. Wong has 22 years of trading and hedging experiences while HC traded for four years and now coaches institutional customers. They can be reached at

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