FEDERAL Reserve chairman Ben Bernanke gave his semi-annual report to the US Congress last week, giving assurance that policymakers would not look forward to tighten the monetary policy in foreseeable future. Market interpreted much of his comments as being dovish, which weakened the greenback further. Meanwhile, US unemployment claims dropped to 334,000 and pushed the Dow Jones markets to 14,550 tops again.
Gold prices consolidated between 1,270.00 and 1,300.00 resistances with slight bullish bias at the end of the week. This week, we reckon that resistance at 1,300.00 levels to be retested. Breaking above here and strong settlement could lift the trend to 1,340.00 levels. However, marginal break within a same day could be false alarm and throw the prices back at 1,270.00 regions. We reckon the imminent trend direction to be unfolded upon Wednesday after China PMI (Purchasing Managers’ Index) manufacturing data is released.
Silver prices consolidated in tandem with gold but unable to sustain the dominance over territories upward of 20.000 levels. The market closed on 19.460 regions on Friday. This week, we reckon that silver prices would likely to consolidate further with slight bearish bias, while failing to recover 20.000 regions could retest 18.500 support areas.
However, pay attention to weakening dollar as it may also accelerate the plunge in silver prices. Jumping above 20.225 may be aiming for 21.500 regions.
WTI Crude prices made another high last week, hitting 108.91 regions amid continuing uncertainty in Egypt, Syria and Libya. Meanwhile the crude stockpile dropped 6.9 million barrels and missed the market estimate for the third consecutive week by a large amount.
The depletion helped WTI Crude prices to sustain the rally, which might persist this week, while aiming for 110.00 resistance regions. Next resistance level is identified at 115.00 levels while support lies at 104.50 areas.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives ended lower on Friday due to weaker fundamentals and demand from European countries.
The newly roll-over delivery in October month closed at 2,257. This week, based on the technical chart, we foresee the trend to remain hawkish with support resting at 2,220 regions while the resistance lies at 2,350.
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>Dar Wong and Wahyu PY are the research team of PWFOREX.com. You may reach them through www.pwforex.com.