INTERNATIONAL COMMODITY NEWS :
• Crude oil prices slipped in Asia on Friday ahead of a speech by Fed Chair Janet Yellen expected to set the tone for markets. On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in October traded at $93.90 a barrel, down 0.07%, after hitting an overnight session low of $92.63 a barrel and a high of $94.44 a barrel. Brent oil rose to $102.71 a barrel, up 0.42%, on Thursday.
• A bearish weekly U.S. supply report sent natural gas future falling on Thursday though prices jumped back into positive territory in choppy trading as investors digested weather reports over the lower 48 U.S. states as well as in the tropical Atlantic Ocean. On the New York Mercantile Exchange, natural gas futures for delivery in September traded at $3.857 per million British thermal units during U.S. trading, up 0.89%. The commodity hit a session low of $3.790, and a high of $3.955.The September contract settled down 1.39% on Wednesday to end at $3.823 per million British thermal units.Natural gas futures were likely to find support at $3.790 per million British thermal units, the session low, and resistance at $4.020, the high from Aug. 12
• Gold prices rebounded in Asia early Friday on bargain hunting. On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at $1,278.60 a troy ounce, up 0.25%, after hitting an overnight session low of $1,274.20 and off a high of $1,292.90. Many investors bet Fed Chair Janet Yellen will provide dovish words in a Jackson Hole speech on Friday to complement the hawkish minutes in order to convey to markets that even though rates will rise, monetary authorities will make sure they do so gradually.
• Copper futures edged lower on Thursday, after data showed that China’s factory activity slowed to a three-month low in August, fuelling concerns over the health of the world’s second largest economy. On the Comex division of the New York Mercantile Exchange, copper for September delivery declined 0.74%, or 2.4 cents, to trade at $3.153 a pound during European morning hours. Data released earlier showed that the preliminary reading of China’s HSBC manufacturing index fell to a three-month low of 50.3 in August from 51.7 in July and well short of forecasts for 51.5. Copper traders consider shifts in the HSBC PMI an indicator of China’s copper demand, as the industrial metal is widely used by the sector.
TRADING STRATEGY :
- BUY GOLD ABOVE 1296 TGT 1300,1305 SL 1201
- SELL GOLD BELOW 1275 TGT 1271,1266 SL 1280