INTERNATIONAL COMMODITY NEWS :
- Crude oil gained in Asia on Monday as investors saw the supply picture slightly tighter on U.S. rig count data last week. On the New York Mercantile Exchange, crude oil for delivery in November rose 0.22% to $45.64 a barrel. In the week ahead, investors will be focusing on Wednesday’s minutes of the Fed’s September meeting, when the central bank decided to delay hiking rates.On Monday, markets in China are to remain closed for a national holiday. Last week, crude oil futures rallied to one-week highs on Friday after data showing that the number of working U.S. oil rigs fell to a five-year low last week, alleviating concerns about oversupply.
- Gold prices edged lower in European morning hours on Friday, but losses were expected to remain limited as Friday’ downbeat U.S. jobs data dampened expectations for a December rate hike by the Federal Reserve. On the Comex division of the New York Mercantile Exchange, gold futures for December delivery slipped 0.22% to $1,134.10.The December contract ended Thursday’s session 2.06% higher at $1,136.60 an ounce. Futures were likely to find support at $1,124.30, the low from September 24 and resistance at $1,141.20, the high from October 2 and a one-week high.
- An 18 per cent cut in natural gas prices will discourage further investments in exploring and developing new gas reserves, Moody’s said in its Credit Outlook report today It said the move is credit negative for producers like Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) as it will lower their revenues and cash flows. From October 1, gas prices have been reduced to $3.82 per million British thermal unit (mmBtu) from $4.66 previously on a gross calorific value basis.
ECONOMY NEWS :
- German will provide India more than 2 billion euros ($2.25 billion) for developing a clean energy corridor and solar projects, Indian Prime Minister Narendra Modi said on Monday after talks with Chancellor Angela Merkel.Modi has made ambitious renewable energy targets a key part of his development agenda and climate change mitigation commitments ahead of a landmark international summit in Paris at the end of this year.
- India and Germany signed a deal on Monday to fast-track business approvals, an arrangement to make it easier for German companies to operate in Asia’s third largest economy that was announced as Chancellor Angela Merkel visited New Delhi.The fast-track approvals process will ensure that German firms will have a single point of contact in the Indian administration, helping them to navigate a web of red tape that often thwarts business initiative.
- Eric Rosengren still expects the Federal Reserve to raise interest rates this year despite what the head of the Boston Fed called a “weak” September jobs report, which could signal a more significant economic slowdown that delays the policy tightening. Rosengren, a dovish Fed official who regains a vote on policy next year, said he does not need to see actual evidence that inflation or wages are rising in order to back an initial rate hike. But the labor market, which is much improved since the recession, is key.
TRADING STRATEGY :
- BUY GOLD ABOVE 1136 TARGET 1141 1147 SL 1130
- SELL GOLD BELOW 1130 TARGET 1125 1119 SL 1136