INTERNATIONAL COMMODITY NEWS :
• Natural gas prices edged lower on Wednesday after weather forecasting models continued to call for milder temperatures to move across the U.S. this weekend, 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 1.32% at $3.839 per million British thermal units during U.S. trading. The commodity hit a session low of $3.838, and a high of $3.917. The October contract settled down 4.31% on Tuesday to end at $3.890 per million British thermal units. Natural gas prices jumped higher last week, rising above the $4 level for the first time since mid-July as higher-than-average temperatures bolstered the demand outlook. Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
• Gold prices weakened marginally in Asia on Thursday with an eye on geoploitical tensions in the Ukraine and Middle East .On the Comex division of the New York Mercantile Exchange, Gold futures for December delivery traded at $1,269.50 a troy ounce, down 0.06%, after hitting an overnight session low of $1,262.10 and off a high of $1,272.00. Gold, a safe haven in times of geopolitical uncertainty, held onto its gains despite talk of a ceasefire in Ukraine.Ukraine’s President Petro Poroshenko said he had agreed with Russian President Vladimir Putin to take steps to establish a “permanent ceasefire” in eastern Ukraine.
• Crude oil futures rebounded from the previous session’s steep declines on Wednesday, after Kiev said it has reached a deal with Russia for a ceasefire in eastern Ukraine. On the ICE Futures Exchange in London, Brent oil for October delivery rallied 1.3%, or $1.30, to trade at $101.65 a barrel during U.S. morning hours. Market sentiment improved after Ukraine’s President Petro Poroshenko said he had agreed on a “permanent ceasefire” with eastern Ukraine with Russian President Vladimir Putin. However, a spokesman for President Putin subsequently said he had not agreed to a ceasefire as Russia was not party to the conflict but added that the two leaders had “discussed how to end the conflict”
TRADING STRATEGY :
- SELL GOLD BELOW 1266 TGT 1262,1256 SL 1271
- BUY GOLD ABPVE 1276 TGT 1280,1285 SL 1270.50