Gold prices closed lower for the second consecutive week.
Last Thursday, European Central Bank (ECB) cut refinance rate from 0.5 per cent to 0.25 per cent which triggered a plunge in gold prices.
On Friday, the US Commerce Department surprised the market with rising payroll above the median forecast at 204,000 while unemployment was at 7.3 per cent.
The dollar rose further and hammered yellow metal as well as energy prices, of which market investors reckoned that recovery has begun in the US economy. Gold prices slid from 1,325 tops as selling orders increased in the market.
The trend unwound rapidly from recovering US dollar Index above 81 benchmarks. This week, we forecast that the market will resist at 1,305 levels in case of small retracement.
However, downfall trend may persist and drive down to 1,360.
Demands may be weakening in yellow metal if we see more growth in the US’ economic data.
WTI Crude prices were supported at 93 levels as market rebound above 94 for the weekend closing.
This week, the market may begin to consolidate for technical recovery while we foresee the price movements may trade from 93 to 98.5 targets.
The crude inventory has slowed down in its weekly report and it may trend upwards from gradual demands. However, beware of it driving beneath 94 levels as this might lead to 91 as our next target.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed lower on weekly basis, declining from 2,632 highs last week. Profit taking was seen as the market prices softened.
January 2014 contract closed at 2,506 with approximately 28,000 contracts. This week, we foresee the market will be supported at 2,460 to 2,480 regions while upside may re-test 2,600 levels.
The market could be prone to trade sideways but short-view needs to be abandoned if prices shoot above 2,632 highs.