INTERNATIONAL COMMODITY NEWS :
• Gold prices rose slightly in Asia on Wednesday in a rebound from overnight and expected demand as holidays ramp up demand and China markets re-opening after a week-long holiday. On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,210.20, up 0.03%. Overnight, gold futures swung between small gains and losses. Market players also looked ahead to the release of minutes from the Fed’s September meeting on Wednesday, after upbeat U.S. employment data last week underlined optimism over the strength of the economy and fueled expectations that the central bank will begin to raise rates sooner and faster than previously thought. Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
• U.S. natural gas futures traded near a two-week low during U.S. morning trade on Tuesday, as investors monitored near-term weather forecasts to gauge the strength of demand for the fuel. On the New York Mercantile Exchange, natural gas for delivery in November fell to a session low of $3.869 per million British thermal units, a level not seen since September 24.Prices recovered to last trade at $3.911 during U.S. morning hours, up 1.3 cents, or 0.32%.A day earlier, natural gas prices plunged 14.1 cents, or 3.49%, to settle at $3.898.
• Crude oil futures extended losses during U.S. morning hours on Tuesday, after the International Monetary Fund cut its forecast for global economic growth this year. On the ICE Futures Exchange in London, Brent oil for November delivery shed 49 cents, or 0.53%, to trade at $92.30 a barrel. London-traded Brent futures fell to $91.25 on Monday, the lowest since June 2012, amid speculation rising global supplies will be more than enough to meet slowing demand. The IMF downgraded its global growth forecast for both this year and next, due to stagnation in Europe and a weaker-than-forecast recovery in Japan. The agency now sees 2014 global growth of 3.3% and 2015 growth of 3.8%, a decline of 0.1% for 2014 and 0.2% for 2015 from forecasts made in July. Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in November traded at $90.20 a barrel, down 14 cents, or 0.15%. Market players awaited the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
TRADING STRATEGY :
- BUY GOLD ABOVE 1215 TGT 1219,1223 SL 1210
- SELL GOLD BELOW 1210 TGT 1206,1201 SL 1215