INTERNATIONAL COMMODITY NEWS :
- Gold futures struggled on Wednesday, as strong gains in global equity markets dampened demand for the yellow metal. Gold prices were also weighed amid ongoing uncertainty about whether the Federal Reserve will increase interest rates later this month when it meets on September 16-17.
- Copper futures extended strong gains from the prior session on Wednesday to hit the highest level in more than seven weeks as indications of steady demand from China and news of global production cuts boosted prices.
- Crude oil prices remained steady but at low levels in early Asian trading on Wednesday as concerns remained that high global production was being met by increasingly slowing demand.
ECONOMY NEWS :
- German Chancellor Angela Merkel said on Wednesday that the euro zone economy was in better shape than a year ago and said reform efforts by countries like Spain and Ireland had paid off. “If we look at the euro zone as a whole, we can say that there is an economic recovery, the situation is better than a year ago,” Merkel told the Bundestag lower house of parliament.
- China’s economic fundamentals are healthy, the head of the country’s top economic planner said on Wednesday.”China has contributed around 30 percent of the world’s economic growth,” Xu Shaoshi, chairman of the National Development and Reform Commission (NDRC), said at the World Economic Forum (WEF), the Swiss-based corporate think-tank which runs the Davos summit of world leaders.
TRADING STRATEGY :
- BUY GOLD ABOVE 1109 TARGET 1114 1120 SL 1103
- SELL GOLD BELOW 1105 TARGET 1100 1094 SL 1111