INTERNATIONAL COMMODITY NEWS :
- Oil prices dipped early on Friday on fresh signs the Middle East will continue to prioritise market share over prices, while the United States kept interest rates at historic lows on worries over the health of the global economy.
- Gold jumped in Asia on Friday after a tepid start as the Federal Reserve kept its benchmark interest rate steady in the face of global economic volatility.On the Comex division of the New York Mercantile Exchange, gold futures for December delivery rose 1.20% to $1,130.40 a troy ounce.
- U.S. crude futures fell sharply on Friday erasing massive gains from earlier in the week, even as oil rig totals nationwide extended a streak of minor declines. Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.
ECONOMY NEWS :
- The U.S. Federal Reserve kept interest rates unchanged on Thursday in a bow to worries about the global economy, financial market volatility and sluggish inflation at home, but left open the possibility of a modest policy tightening later this year.
- Wall Street stocks closed lower on Friday in heavy trading as the Federal Reserve’s decision to keep interest rates near zero fueled concerns about the potential impact of continuing weak global growth on U.S. corporate earnings.
- The U.S. Federal Reserve’s decision not to raise interest rates on Thursday is giving investors a green light to buy bonds on the view that the central bank won’t move for some time.
TRADING STRATEGY :
- BUY GOLD ABOVE 1139 TARGET 1144 1150 SL 1133
- SELL GOLD ABOVE 1136 TARGET 1131 1125 SL 1142