THE US economic performance indicated downward inflation last week.
Producer prices rose 0.3% in August while retail sales dropped 0.2% below median forecast.
Meanwhile, Syrian situation improved after Russia helped to broker negotiation on chemical weapon inspection.
The tension on US military action eased against Syria and appeased the market with lowering commodity prices.
However, traders are still anxious on possible tapering measure in this week’s Federal Open Market Committee (FOMC) meeting as rising job market has been used as major benchmark to measure policy-making.
Gold prices plunged to 1,304.80 lows last week before recoiled back on Friday to close at 1,326.10 regions.
The sharp plunge was mainly due to diffused tension in Syria and expectation of Federal Reserve tapering could begin in September.
This week, we reckon that the trend would be much dependent on release of FOMC meeting.
Technically, the market is prone to short-cover but suppressed at 1,335.00—1,340.00 areas.
Driving down at 1,300.00 may be possible again in case the demand fall amid tapering stimulus.
Silver prices slid down significantly last week to 21.420 lows as it failed to penetrate 24.000 resistances.
Silver prices reversed higher on Friday and closed at 22.240 levels.
This week, we reckon that silver prices to likely be capped below 23.000 resistances while still prone to slight bearishness.
The range may trade from 20.500—23.000 regions but still reliant on Fed release on Thursday.
WTI Crude prices consolidated between 106.44 and 110.44 regions as buying interest slowed down.
This week, we reckon that market to probably consolidate in the same range with selling pressure from the topside.
Breaking below 106.00 regions will indicate more liquidation to 104.00 regions if bears engulf the market after mid- week.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives waned in demands due to growing inventory.
Prices fell after entailing general commodities as November contracted expired on Friday.
The newly roll-over December contract settled at 2,344 at closing bell.
This week, we shall observe the volume of turnover for deciding the trend direction.
Technically, we reckon the market to slide further at S1—2,250 or S2—2,200 if the bears begin.
Resistance stays at 2,400 regions.
> Disclaimer: This article is written for general information only. No liability by the contributors or newspaper.
> DAR Wong and Wahyu PY are the research team of PWFOREX.com. You may reach them through www.pwforex.com.