CCTV Script 28/10/13
— This is the script of CNBC's news report for China's CCTV on October 28, Monday.
Welcome to the CNBC Business Daily.
Crude prices are going their separate ways during Asian trade. Bargain-hunting is supporting Brent after posting its biggest weekly fall in a month last week. But, concerns over higher supply and and faltering demand pressuring Nymex lower. One analyst we spoke to sees crude continuing to trend lower:
[Soundbyte on tape by Jonathan Barratt, Founder, Barratt's Bulletin] We've been a bear for some time. We thought we were going to come in right on support, but that's only near term. I think the trend for oil remains weak. We probably suggest that it'll trade lower, but at the moment, we're going to have a little bit of a breather, back towards that $100.
His sentiment was reflected in our weekly CNBC oil survey, with nearly two-thirds of our respondents forecasting lower crude prices this week. Only 5 of the 21 analysts surveyed were bullish on the oil markets.
Over to gold as prices hover near 5-week highs, getting some support from expectations that the Federal Reserve would stick to its 85 billion dollar bond buying plan later this week. Year to date, gold has fallen some 20 percent as traders shifted into riskier assets. And our next guests suggest the time is right to get back into the precious metal:
[Soundbyte on tape by Rob Aspin, Head of Equity Investment Strategy, Standard Chartered Bank Wealth Management Group] We do anticipate that in the short term, gold could perform better than it has in the past few quarters. In the long term, we are still focused on the equity space, where you get growth, you get yield as opposed to gold.
[Soundbyte on tape by Jonathan Barratt, Founder, Barratt's Bulletin] I think gold itself, we've had a positive opening. As long as we can stick around this 1,350 level, then I can suggest that it does start to trade back higher. 1,375 is probably the target. We have been long for awhile and we're happy with that trade whilst we've got that stimulus going and no talk of tapering. I like the fact that gold will win as a result of that and should start to trade higher.
Respondents to our CNBC Gold survey seem to agree.68 percent of the analysts we talked to see prices of the yellow metal rising this week. Only 18 percent expect prices to fall.
Chloe Choe from CNBC's Singapore headquarters.