MARKET UPDATE --------- Weekly Commentary Forecast (from 16 Nov 2020)
Gold prices have exhibited strong support at USD1850 /oz after the market fell on last Monday. This week, we reckon the market movement will thread from USD1850 – USD1900 /oz in mixed trading. While the market investors are staking attention on the rising Dow index, yellow metal will slow down in demand. Beware of unexpected fall beneath USD1850 /oz.
WTI Crude prices hit the USD43.00 /barrel topside before settling at USD40.00 /barrel region on Friday. This week, we predict the range will be trading sideways again from USD37.00 – USD43.00 /barrel. Meanwhile, the market has not shown any directional headway for past few months.
Silver prices have been trading sideways after falling on last Monday. This week, the trend will face strong resistance at USD25.00 /oz in case of recovery. We foresee the overall trend will be contained from USD23.50 – USD25.00 /oz range for time being. Mixed trading is expected as most interest will still follow Gold prices.
Crude Palm Oil (FCPO) Futures on Bursa Derivatives continues to rise ahead of Diwali holiday season. Market will roll over to February month this week and we expect some corrections. January21 Futures contract settled at RM3389 /MT on Friday. This week, we expect the trend to take a breather and consolidate from RM3300 – 3400 /MT in mixed trading. Be expectant of breakout in case of new market fundamentals.
TOCOM Rubber closed at JPY233.70 /KG on Friday after the trend recovered from JPY208.10 /KG. Technically speaking, we foresee the trend will recover to JPY245.10 /KG this week and begin to thread sideways. Downside support lies at JPY230.00 /KG in case of drawdown.