The US GDP for the second quarter gained 1.7% and better than forecast, hence injecting investors’ confidence for a potential recovery. The US Federal Reserve, European Central Bank (ECB), and Bank of England (BoE) are keeping the monetary policy and interest rate as status quo amid rumours of tapering stimulus in September. On Friday, American payrolls rose 162,000 in July and below consensus despite unemployment jobs dropping to 7.4% from 7.6% in June.
Gold prices slid after the middle of last week. Market rebound from 1,282.00 lows and closed at 1,310.00 levels on Friday. This week, we reckon that gold prices to likely to continue in southern trend while aiming at 1,270.00 regions. Breaking below this level may trigger massive selling pressure and tumble to 1,220.00 regions. On the other hand, we foresee strong sellers might ambush at 1,330.00 areas while reversing above 1,340.00 woulod need you to abandon your short-view.
Silver prices traded in consolidation between 19.180 and 20.250 regions last week. Technically, we reckon that silver prices would be threading below 20.600 resistances which could suppress the trend to 19.000 regions if led by the yellow metal’s fall in coming week. The range has been rather narrow for silver despite the huge volatility in gold prices. In our opinion, the market would only change to bullish sentiment if the buying demand pierces above the 20.600 levels.
WTI Crude prices rallied strongly from 103.00 support regions to above 108.00 regions amid US GDP gains. While US crude oil inventories increased slightly last Wednesday, stockpiles such as Cushing and Oklahoma were down 1.9 million barrels and tightened the supply. Market closed at slightly below 107.00 regions for the weekend and may continue to thread sideways in the coming week. Technically, we reckon the range to move from 104.00—109.00 regions but ascending above 109.00 might climb higher to test 1,140.00 resistances.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives short-covered in prices and closed firmer ahead of coming long holidays in Malaysia. Bargain hunting and support emerged last week as expected but climbing above 2,220 resistances could indicate the end of bear market in FCPO for the time being. The October delivery month closed at 2,257 and may be trading from 2,200—2,300 ranges for this week in light volume.
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>DAR Wong and Wahyu PY are the research team of PWFOREX.com. You may reach them through www.pwforex.com.