News Column

KASB Securities Limited and Economics Research - Commodities Corner

June 23, 2014

Commodities higher on escalating geo-political tensions

Gold higher on safe-haven buying: Gold prices were steady above the US$1,300/oz level on Friday, as geo-political tensions continue to escalate.

Iran's supreme leader accused the United States on Sunday of trying to retake control of Iraq by exploiting sectarian rivalries, as Sunni insurgents drove towards Baghdad from new strongholds along the Syrian border.

Oil prices rise as geo-political tensions continue: US crude oil prices closed higher as militants in Iraq seized more territory and President Barack Obama warned that the crisis may spill over into other countries.

Fighting concentrated around Iraq's largest refinery, a 300,000-barrel-per-day facility located in Baiji, 124 miles (200 km) north of Baghdad.

Time Currency Impact Event

23rd June 2014 Monday

6:45pm USD Medium Flash Manufacturing PMI 56.1 56.4

7:00pm USD High Existing Home Sales 4.74M 4.65M

24th June 2014 Tuesday

7:00pm USD High CB Consumer Confidence 83.6 83.0

7:00pm USD High New Home Sales 442K 433K

Gold Spot

Technical Strategy: Buy on Weakness

Gold closed at US$1,314, above the 100 - DMA which is at US$1,300. RSI and Stochastic are bullish and suggest that higher prices. KASB Securities Limited recommends buying on weakness above US$1,300 targeting US$1,321 (Friday's high), with stops below US$1,287 (10 - DMA).

Silver Spot

Technical Strategy: Buy on Weakness

Silver closed at US$20.84, above the 200 - DMA which is at US$20.37. RSI and Stochastic are bullish and suggest higher prices in the near term. KASB Securities Limited recommends buying on weakness above US$20.56 (Friday's low) targeting US$20.96 with stops below US$20.37.

WTI Spot (Crude Oil)

Technical Strategy: Play the range

Oil closed at US$106.66, above the 5 - DMA which is at US$106.34. However, RSI and Stochastic are overbought and suggest that the upside is limited. KASB Securities Limited recommends playing the range of US$106.34 - US$107.37. A break below US$106.34 can target US$105.69 (10 - DMA); while a break above US$107.37 can target US$108.32.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Pakistan Press International

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters