INTERNATIONAL COMMODITY NEWS :
- Gold futures edged lower on Wednesday, as expectations for a U.S. rate hike in the coming months dampened the appeal of the precious metal.Gold for December delivery on the Comex division of the New York Mercantile Exchange shed $2.20, or 0.2%, to trade at $1,124.60 a troy ounce during European morning hours.Most economists believe the U.S. central bank will begin raising rates in December after holding policy steady in September due to concerns over the global economy, particularly China.
- Platinum futures struggled near the lowest level since December 2008 on Wednesday, as fears that the Volkswagen (XETRA:VOWG) emissions scandal would reduce demand from the auto sector weighed.Platinum for January delivery on the Comex division of the New York Mercantile Exchange inched up $6.00, or 0.65%, to trade at $924.10 an ounce during U.S. morning hours. Platinum prices are on track for a 14.7% drop in the second quarter, the worst quarterly performance since 2008.
- Crude oil futures fell in early Asian trade on Wednesday after U.S. inventories showed a weekly buildup that far exceeded analyst expectations.The American Petroleum Institute (API) said late on Tuesday that U.S. crude oil stockpiles rose by 4.6 million barrels to 457.8 million barrels in the week to Sept. 25. Analysts polled by Reuters had expected an increase of only 102,000 barrels.
ECONOMY NEWS :
- The World Trade Organization cut its forecasts for global goods trade on Wednesday after quarterly growth turned negative, with trade shrinking by an average of 0.7 percent in the first two quarters of this year.The WTO sees world trade growth of 2.8 percent this year and 3.9 percent in 2016, revised down from the forecasts it made in April of 3.3 percent and 4.0 percent, respectively.
- A top Federal Reserve official on Wednesday largely dismissed concerns that bond-market liquidity has sharply diminished in the wake of regulatory reforms, saying other changes like the rise in rapid electronic trading may play a bigger role. “The evidence to date that liquidity has diminished markedly is, at best, mixed,” he said at a securities industry event.
- The U.S. Securities and Exchange Commission (SEC) is expanding an effort that allows its staff to search massive amounts of data for signs of insider trading and other securities violations, a person familiar with the matter said.The SEC is awarding a five-year, $90 million contract to privately held Palantir Technologies to provide software for the detection program, the person said.
TRADING STRATEGY :
- BUY GOLD ABOVE 1116 TARGET 1120 1126 SL 1110
- SELL GOLD BELOW 1110 TARGET 1105 1099 SL 1116