News Column

KASB Securities Limited and Economics Research - Commodities Corner

August 15, 2014



Gold gains on weak economic data

Gold strong on safe-haven demand: Gold traded firmly above US$1,300/oz on Friday and looked poised for a second-straight weekly gain as sluggish global economic data and geopolitical tensions boosted the metal's safe-haven appeal. Gold gained further momentum on data on Thursday that showed the number of Americans filing new claims for unemployment benefits rose more than expected last week.

Ample supply curbs oil: Oil headed for a fourth weekly drop, the longest losing streak since November, amid speculation that crude supplies are rising as global demand slows down. Oil also slid further after President Barack Obama said the danger from radicals in Iraq still requires U.S. involvement, even while the need for a rescue mission to save a trapped religious minority has been relieved.

Time Currency Impact Event Forecast Previous

15 th August 2014 Friday

5:30pm USD High PPI m/m 0.10% 0.40%

5:30pm USD Medium Core PPI m/m 0.20% 0.20%

6:00pm USD Medium TIC Long-Term Purchases 27.3B 19.4B

6:15pm USD Medium Capacity Utilization Rate 79.20% 79.10%

6: 15pm USD Medium Industrial Production m/m 0.30% 0.20%

6:55pm USD High Prelim Consumer Sentiment 82.7 81.8

18 th August 2014 Monday

7:00pm USD Medium NAHB Housing Market Index - 53

Gold Spot

Technical Strategy: Buy on Weakness

Gold closed at US$1,312, above the 10 - DMA which is at US$1,305. RSI and Stochastic are bullish and suggest higher prices in the near term. KASB Securities Limited recommends buying on weakness above US$1,305 targeting US$1,320 with stops below US$1,296 (100 - DMA).

Silver Spot

Technical Strategy: Sell on Strength

Silver closed at US$19.80, below the 200 - DMA which is at US$20.11. RSI and Stochastica are bearish and suggest lower prices. KASB Securities Limited recommends selling on strength below US$19.94 targeting US$19.68 with stops above US$20.11.

WTI Spot (Crude Oil)

Technical Strategy: Play the range

Oil closed at US$95.49, below the 5 - DMA which is at US$96.60. However, RSI and Stochastic are oversold and suggest that the downside is limited. KASB Securities Limited recommends playing the range of US$96.60 - US$95.12. A break below US$95.12 can target US$94.71; while a break above US$96.60 can target US$97.89 (15 - DMA).


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Source: Pakistan Press International


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