News Column

KASB Securities Limited and Economics Research - Commodities Corner

May 14, 2014



Commodities higher as investors eye Ukraine tensions

Gold edged higher on escalating tensions in Ukraine: Gold prices edged up on escalating tensions in Ukraine. Pro Russian separatists' ambushed Ukrainian troops on Tuesday, killing seven soldiers, in the heaviest loss of life for government forces in a single clash since Kiev sent soldiers to put down a rebellion in the country's east.

WTI heads up on declining US crude inventories: WTI oil advanced for a third day, on speculation that crude inventories fell at the biggest US oil storage hub. In other news, Ukraine urged Russia to condemn militants blamed for destabilizing the country as rebels killed seven soldiers during an ambush in a breakaway eastern region.

Time Currency Impact Event Forecast Previous

14th May 2014 Wednesday

5:30pm USD High PPI m/m 0.2% 0.5%

5:30pm USD Medium Core PPI m/m 0.2% 0.6%

Tentative USD Medium Mortgage Delinquencies - 6.41%

7:30pm USD Medium Crude Oil Inventories -0.4M -1.8M

15th May 2014 Thursday

5:30pm USD High Core CPI m/m 0.1% 0.2%

5:30pm USD High Unemployment Claims 321K 319K

5:30pm USD Medium CPI m/m 0.3% 0.2%

7:00pm USD High Philly Fed Manufacturing Index 13.9 16.6

Gold Spot

Technical Strategy: Sell on Strength

Gold closed at US$1,293 below the 200-DMA which is at US$1,299. RSI and Stochastic are bearish and suggest lower prices in the near term. KASB Securities Limited recommends selling on strength below US$1,299 targeting US$1,285 (Friday's low), with stops above US$1,306.

Silver Spot

Technical Strategy: Sell on Strength

Silver closed at US$19.51, below the 30-DMA which is at US$19.62. RSI and Stochastic are bearish and suggest lower prices in the near term. KASB Securities Limited recommends selling on strength below US$19.62 targeting US$19.06 with stops above US$19.80 (Upper Bollinger).

WTI Spot (Crude Oil)

Technical Strategy: Sell on Strength

Oil closed at US$101.93, below the 61.8% retracement of US$98.73-US$104.96 which is at US$102.55. A test of US$101.03 (5-DMA) is likely. KASB Securities Limited recommends selling on strength below US$102.55 targeting US$101.03 with stops above US$102.86 (Upper Bollinger).


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Source: Pakistan Press International


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