INTERNATIONAL COMMODITY NEWS :
• Gold price gained slightly in early Asia on Monday in a light regional data day and the focus on the dollar.On the Comex division of the New York Mercantile Exchange, gold futures for February delivery trade at $1,223.80 a troy ounce, up 0.04%.The US dollar index, which measures the dollar against a basked of six major currencies, fell 0.22% to 91.98.Last week, gold rallied to the highest level in almost four weeks on Friday, after the latest U.S. jobs report showed a surprise drop in hourly wages, suggesting that the Federal Reserve could keep rates on hold for longer.The Labor Department reported that the U.S. economy added 252,000 jobs in December, above expectations for jobs growth of 240,000. The unemployment rate ticked down to a six-and-a-half year low 5.6% from 5.8% in November. Economists had forecast a decline to 5.7%.
• Brent oil fell to a five-and-a-half year low on Friday, as investors continued to focus on a glut in global supplies.On the ICE Futures Exchange in London, Brent for February delivery hit a session low of $48.90 a barrel, a level not seen since April 2009, before settling at $50.11, down 85 cents, or 1.67%.On the week, the February Brent contract plunged $6.31, or 11.18%, the seventh consecutive weekly decline.Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in February slumped 43 cents, or 0.88%, on Friday to end the week at $48.36 a barrel. WTI oil fell to $46.83 on January 7, the weakest level since April 2009.
• Crude oil prices plunged in Asia on Monday with oversupply concerns gaining traction in the face of weak global demand.On the New York Mercantile Exchange, crude oil for delivery in February slumped 1.35% at $47.41 a barrel.Last week, Brent oil fell to a five-and-a-half year low on Friday, as investors continued to focus on a glut in global supplies.On the ICE Futures Exchange in London, Brent for February delivery hit a session low of $48.90 a barrel on Friday.Oil prices pared losses towards the end of the session after industry research group Baker Hughes said the number of rigs drilling for oil in the U.S. fell by 61 last week to 1,421. It was the largest weekly drop since February 1991.The number of oil rigs has declined in 10 of the last 13 weeks since hitting an all-time high of 1,609 in mid-October.
• U.S. natural gas futures edged higher on Friday, but gains were limited as investors monitored shifting weather forecasts for further indications on the outlook for U.S. demand and supply levels.On the New York Mercantile Exchange, natural gas for delivery in February tacked on 1.9 cents, or 0.65%, on Friday to settle at $2.946 per million British thermal units by close of trade.
TRADING STRATEGY :
- BUY GOLD ABOVE 1230 TARGET 1235 1241 SL 1224
- SELL GOLD BELOW 1221 TARGET 1216 1210 SL 1227