INTERNATIONAL COMMODITY NEWS :
- Natural gas futures fell to session lows on Thursday after data showed that U.S. natural gas supplies rose more than expected last week.On the New York Mercantile Exchange, natural gas for delivery in October was last down 1.24% to $11.990 per million British thermal units. Prices were at around $2.556 prior to the release of the supply data.
- Gold prices fell in Asia on Friday after Fed Chair Janet Yellen said that an interest rate hike this year is still very much on the cards.Yellen said she anticipates that it will be appropriate to raise short-term interest rates by the end of the year. Overnight, gold futures surged more than $20 an ounce as weak economic data weighed on the dollar, ahead of Janet Yellen’s first public appearance on Thursday night since the Federal Reserve held short-term interest rates at its current near-zero level last week.
- Oil prices were steady at about $48 per barrel on Friday, pressured by a rise in the dollar, weak consumer data from Japan and after analysts from Standard & Poor’s ratings cut their oil price assumptions. Globally traded Brent futures were at $48.19 per barrel at 1124 GMT, up just 2 cents from their last close and erasing earlier Friday gains. U.S. West Texas Intermediate (WTI) futures were up 23 cents at $45.14 a barrel.
ECONOMY NEWS :
- The U.S. central bank remains on track to begin raising interest rates later this year as long as inflation remains stable and the economy is strong enough to boost employment, said Federal Reserve Chairwoman Janet Yellen, Reuters reported Thursday. Yellen’s statements came just one week after Fed policymakers delayed a rate hike and voted to keep interest rates near zero.
- Euro zone inflation and U.S. jobs data will offer clues to the health of major developed economies in the coming week while the malaise gripping emerging markets is expected to prompt India to cut interest rates. China may release monthly foreign exchange reserve data indicating how much more the central bank has spent on steadying the yuan following Aug.
- The shock resignation of U.S. House Speaker John Boehner on Friday reduces the chances of a government shutdown next week, potentially removing one source of investor anxiety as Wall Street gears up for a week heavy with economic data and commentary by Federal Reserve policymakers. “This significantly reduces the probability of a government shutdown next week,” Goldman Sachs (NYSE:GS) economists said in a note to clients on Friday.
TRADING STRATEGY :
- BUY GOLD ABOVE 1148 TARGET 1153 1159 SL 1142
- SELL GOLD BELOW 1140 TARGET 1135 1129 SL 1146