INTERNATIONAL COMMODITY NEWS :
- Oil prices extended gains in early trading in Asia on Wednesday after U.S. prices were boosted by a stockpile draw, while a warning by OPEC producer Iraq that it may slow spending on new fields pushed up international crude contracts.
- Gold struggled to break out of a tight range near its one-month low on Wednesday, as investors waited to hear on the outlook of U.S. interest rates from a Federal Reserve policy meet that kicks off later in the session.
- Crude supplies fell 3.1 million barrels in the U.S. last week, according to the American Petroleum Institute late Tuesday, signalling that refineries are ramping up for winterheating oil demand. Data for refined products was not immediately available.
ECONOMY NEWS :
- Organisation for Economic Co-operation and Development (OECD) updates key macroeconomic forecasts for major economies – 0900 GMT. SINGAPORE – Asian Development Bank President Take hiko Nakao speaks on Asian economic outlook and role of ADB – 0130 GMT. Nakao will also be attending the inaugural international conference on Evolving Finance, Trade and Investment in Asia .
- Emerging market currencies have tumbled, equities have fallen and bond yields have risen steadily since the middle of the year, when Fed officials flagged the possibility that they could lift their near zero rates in the second half for the first time in nine years.
- World share markets rose on Wednesday and short-term U.S. bond yields held near 4 1/2-year highs as investors braced for the possibility of the first interest rate hike in the United States in almost a decade.
TRADING STRATEGY :
- BUY GOLD ABOVE 1125 TARGET 1130 1136 SL 1119
- SELL GOLD BELOW 1118 TARGET 1113 1107 SL 1124