INTERNATIONAL COMMODITY NEWS :
• Oil prices dropped on Tuesday due to mounting concerns that global supply is far outreaching demand, while a stronger U.S. dollar also bruised the commodity .In the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in October traded down 3.01% at $93.07 a barrel during U.S. trading. New York-traded oil futures hit a session low of $92.93 a barrel and a high of $95.88 a barrel. While the U.S. economy continues to show signs of improvement, the global economy may be battling headwinds, concerns of which that battered crude prices earlier. China’s official manufacturing index ticked down to 51.1 from 51.7 in July, while the HSBC manufacturing index slowed to 50.2 from 50.3 the previous month.
• Natural gas prices dropped on Tuesday after weather forecasting models called for falling temperatures across the U.S., which should cut into the need for air conditioning and thus reduce demand for the commodity at the nation’s thermal power plants. On the New York Mercantile Exchange, natural gas futures for delivery in October were down 3.60% at $3.919 per million British thermal units during U.S. trading. The commodity hit a session low of $3.898, and a high of $4.073. The October contract settled up 0.52% on Friday to end at $4.065 per million British thermal units. U.S. markets were closed on Monday for the Labor Day holiday. Natural gas prices jumped higher last week, rising above the $4 level for the first time since mid-July on the coattails of above-average U.S. temperatures.
• Gold prices dropped on Tuesday after an upbeat U.S. manufacturing report fueled demand for the U.S. dollar, which trades inversely with the yellow metal. On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at 1,265.70 a troy ounce during U.S. trading, down 1.69%, up from a session low of $1,263.20 and off a high of $1,288.60. The December contract settled down 0.23% at $1,287.40 on Friday. U.S. markets were closed on Monday for the U.S. Labor Day holiday. The greenback firmed and gold fell after the Institute for Supply Management reported that its manufacturing purchasing managers’ index jumped to 59.0 in August from 57.1 in July, defying analysts’ calls for the index to tick down to 56.8.
TRADING STRATEGY :
- SELL GOLD BELOW 1266 TGT 1262,1256 SL 1271
- BUY GOLD ABPVE 1270 TGT 1274,1279 SL 1265