News Column

KASB Securities Limited and Economics Research - Commodities Corner

September 1, 2014



Investors await China's economic data

Gold finds support below one week high: Gold remained stable, finding safe haven support as geopolitical tensions continue with Iraqi army and Kurdish forces closing in on Islamic State fighters on Saturday, in a push to break the militants' siege of a town in northern Iraq. Moreover, the United States carried out air strikes there as well.

Oil lower amid increasing supply: US crude edged lower on Monday upon weak demand and rising production, following gains in the previous four sessions on strong economic data in the United States and worries that the intensifying crisis in Ukraine may trigger more sanctions. Investors will be watching China's official manufacturing PMI reading on Monday; any further sign of weakness in factory activity may strengthen fears of a slowdown in the major commodity user, and spur declines in oil.

Time Currency Impact Event Forecast Previous

1st September 2014 Monday

All Day CAD High Bank Holiday  Â

All Day USD High Bank Holiday  Â

2nd September 2014 Tuesday

7:00pm USD High ISM Manufacturing PMI 57 57.1

Gold Spot

Technical Strategy: Buy on Weakness

Gold closed at US$1,286, above the 5 - DMA which is at US$1,283 RSI and Stochastic are bullish and suggest higher prices in the near term. KASB Securities Limited recommends buying on weakness above US$1,283 targeting US$1,294 (100 - DMA) with stops below US$1,274.

Silver Spot

Technical Strategy: Buy on Weakness

Silver closed at US$19.42, above the 5 - DMA which is at US$19.38. RSI and Stochastic are bullish and suggest higher prices in the near term. KASB Securities Limited recommends buying on weakness above US$19.38 targeting US$19.74 with stops below US$19.25.

WTI Spot (Crude Oil)

Technical Strategy: Buy on Weakness

Oil closed at US$95.81, above the 20 - DMA which is at US$95.30. RSI and Stochastic are bullish and suggest higher prices in the foreseeable future. KASB Securities Limited recommends buying on weakness above US$95.30 targeting US$96.50 with stops below US$94.55 (15 - DMA).


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Source: Pakistan Press International


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