INTERNATIONAL COMMODITY NEWS :
- Crude oil prices gained smartly in Asia on Monday as investors saw the dollar steady to weaker for now as the Federal Reserve appears on hold for rates.On the New York Mercantile Exchange, crude oil for delivery in November gained 1.03% to $49.94 a barrel.Last week, crude oil prices were little changed at the end of a volatile session on Friday having failed to close above the $50 level, but expectations for continued declines in production underpinned prices.
- Gold prices jumped in Asia on Monday as investors show greater confidence that the Federal Reserve will hold steady in October.Gold for December delivery was up 1.18% to $1,157.80 a troy ounce, while silver futures for December delivery gained 0.60% to $15.860 a troy ounce.Last week, Gold rallied to the highest level in seven weeks on Friday on the back of heightened expectations that the Federal Reserve will hold off on hiking interest rates until 2016.
- Copper futures jumped to a three-week high on Monday, amid concerns over supply cuts by mining giant Glencore (L:GLEN).Copper for December delivery on the Comex division of the New York Mercantile Exchange hit an intraday peak of $2.435 a pound, the most since September 18, before trading at $2.434 during morning hours in London, up 2.0 cents, or 0.82%.
ECONOMY NEWS :
- Foreign investors started buying India’s state bonds on Monday for the first time after the central bank said last month it would allow up to 500 billion rupees ($7.72 billion) in staggered investments until March 2018.The first bond bought was 1 billion rupees worth of 8.28 percent 2025 Maharashtra bond at a yield of 7.93 percent, according to the Clearing Corporation of India Ltd data.
- Left outside the U.S.-backed Trans-Pacific Partnership trade pact struck last week, China and India approach this week’s talks for a huge Asia-wide equivalent with fresh urgency, lest competitor nations steal a march on export access. Beijing is a key driver of the Regional Comprehensive Economic Partnership, a proposed 16-nation free-trade area that would be the world’s biggest such bloc, encompassing 3.4 billion people.
- U.S. Federal Reserve policymakers are still likely to raise interest rates this year, but that is “an expectation, not a commitment” and could change if the global economy pushes the U.S. economy further off course, Federal Reserve Vice Chairman Stanley Fischer said. “Both the timing of the first rate increase and any subsequent adjustments to the federal-funds-rate target will depend critically on future developments in the economy.
TRADING STRATEGY :
- BUY GOLD ABOVE 1167 TARGET 1172 1178 SL 1161
- SELL GOLD BELOW 1160 TARGET 1155 1149 SL 1166