News Column

KASB Securities Limited and Economics Research - Commodities Corner

July 23, 2014



Commodities lower as Ukraine tensions ease

Gold erases yesterday's gains on strong US economic data: Gold prices closed lower on Tuesday on better than expected US existing home sales data. A stronger US Dollar and easing tensions in Ukraine also dampened the yellow metal's safe haven appeal.

WTI lower as the Pro-Russian rebels cooperate with International authorities: Oil prices closed lower despite the threat of new EU sanctions on Russia after the pro - Russian rebels agreed to hand over the black box from Malaysian flight MH17 to international authorities. Oil supplies remain unaffected by conflicts in Iraq, Ukraine and Gaza. Market participants will now focus on the US Oil Inventory report on Wednesday.

Time Currency Impact Event

23rd July 2014 Wednesday

7:30pm USD Medium Crude Oil Inventories -2.1M -7.5M

24th July 2014 Thursday

5:30pm USD High Unemployment Claims 310K 302K

6:45pm USD Medium Flash Manufacturing PMI 57.5 57.3

7:00pm USD High New Home Sales 485K 504K

Gold Spot

Technical Strategy: Play the range

Gold closed at US$1,307, below the 10 - DMA which is at US$1,314. However, RSI and Stochastic are bullish in the near term. KASB Securities Limited recommends playing the range of US$1,301 (100DMA) - US$1,318. A break below US$1,301 can target US$1,292 (last week's low), while a break above US$1,318 can target US$1,325.

Silver Spot

Technical Strategy: Sell on Strength

Silver closed at US$20.95, below the 20 - DMA which is at US$21.05. RSI and Stochastic are bearish and suggest lower prices in the near term. KASB Securities Limited recommends selling on strength below US$21.05 targeting US$20.45 (50-DMA) with stops above US$21.25 ( 18th July high).

WTI Spot (Crude Oil)

Technical Strategy: Play the range

Oil closed at US$102.10, below the 100 - DMA which is at US$102.20. However, RSI and Stochastic are bullish and suggest higher prices in the near term. KASB Securities Limited recommends playing the range of US$101.50 (10-DMA) - US$103.10 (20DMA). A break below US$101.50 can target US$100.60 (17th July low), while a break above US$103.30 can target US$104.10 (61.8% of US$107.45 - US$99.00).


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



Source: Pakistan Press International


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters