Weekly Commentary Forecast (from 21 Dec 2020)

Golprices traded higher as Dollar softened last week. This week, we reckon the resistance will emerge at USD1900 /oz area. Overall range will be contained from USD1840 – USD1900 /oz while traders will focus on Dollar strength and stimulus from U.S. Federal Reserve to lead the Gold trend. Caution is reminded in case of unexpected trend emerging in market. 

WTI Crude prices climbed higher from USD46.00 /barrel to USD49.00 /barrel last week. Oil prices rose from weaker Dollar trend but still encountered strong resistance now. This week, we project the range will be contained from USD48.00 – USD51.00 /barrel if Dollar continues to stay at low side. However, we also expect the market activity to reduce towards Christmas season.  

Silver prices broke above USD24.80 /oz level but limited at USD26.00 /oz resistance now. While Silver is still a follower to yellow metal currently, we expect the market to be smaller in price movement in December. This week, overall range is projected to be from USD24.50 – USD26.00 /oz but beware of piercing above USD26.00 /oz level.  

Crude Palm Oil (FCPO) Futures on Bursa Derivatives traded sideways last week. Basically, market range was well contained within our predicted region and unchanged in sentiment. March21 Futures settled at RM3443 /MT on Friday. This week, we remain unchanged in our projection for the trend to trade from RM3350 – RM3450 /MT region. Breaking above the resistance will aim for RM3500 /MT.  

TOCOM Rubber closed at JPY246.50 /KG on Friday. Market is slightly bullish from technical appearance. This week, we reckon the range will be contained from JPY240.00 – JPY250.00/KG while consolidating sideways. Due to the strong suppression in USD/JPY trend, we expect the TOCOM rubber will be prone to sideways trend rather than a continual strong bullish sentiment above JPY250.00 /KG level.


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