News Column

KASB Securities Limited and Economics Research - Commodities Corner

May 7, 2014

Worsening Ukraine crisis boosts gold's safe haven appeal

Gold prices steady above its three week high on Ukrainian crisis: Gold was steady after reaching its highest level in three weeks as more intense fighting in Ukraine lifted the metal's safe?haven appeal against signs of reduced demand from China, the top consumer.

WTI slips as crude inventories are seen rising: WTI slipped on Monday amid speculation that crude inventories may expand further this week. Ample supply is weighing in on oil prices. Last week's report from the U.S. Energy Information Administration showed an unexpected increase in gasoline stockpiles as well.

Time Currency Impact Event Forecast Previous

6th May 2014 Tuesday

5:30pm CAD High Trade Balance 0.4B 0.3B

5:30pm USD High Trade Balance -40.1B -42.3B

7:00pm CAD High Ivey PMI 54.5 55.2

7 the May 2014 Wednesday

5:30pm USD Medium Prelim Nonfarm Productivity q/q -0.9% 1.8%

5:30pm USD Medium Prelim Unit Labour Costs q/q 2.3% -0.1%

7:00pm USD High Fed Chair Yellen Testifies - -

7:30pm USD Medium Crude Oil Inventories - 1.7M


Gold Spot

Technical Strategy: Sell on Strength

Gold closed at US$1,310, below the 50-DMA which is at US$1,316. A test of 200-DMA which is at US$1,299 is likely. KASB Securities Limited recommends selling on strength below US$1,316 targeting US$1,299 with stops above US$1,322 (Upper Bollinger).

Silver Spot

Technical Strategy: Buy on Weakness

Silver closed at US$19.56, above the 5-DMA which is at US$19.41. RSI and Stochastic are bullish and suggest higher prices in the near term. KASB Securities Limited recommends buying on weakness above US$19.41 targeting US$19.79 with stops below US$19.09 (Lower Bollinger).

WTI Spot (Crude Oil)

Technical Strategy: Sell on Strength

Oil closed at US$99.40, below the 200-DMA which is at US$100.34. RSI and Stochastic are bearish and suggest lower prices in the near term. KASB Securities Limited recommends selling on strength below US$100.34 targeting US$98.90 (Yesterday's low) with stops above US$101.10.

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Source: Pakistan Press International

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