INTERNATIONAL COMMODITY NEWS :
- Copper futures swung between small gains and losses on Wednesday, as weak China inflation data reinforced views that Beijing will roll out fresh support measures soon for the world’s second largest economy.Copper for December delivery on the Comex division of the New York Mercantile Exchange inched down 0.4 cents, or 0.17%, to trade at $2.384 a pound during morning hours in London.
- Crude oil futures struggled on Wednesday, after disappointing economic data from China added to worries about its ability to meet its year-end growth target.On the ICE Futures Exchange in London, Brent oil for December delivery inched down 8 cents, or 0.16%, to trade at $49.61 a barrel during European morning hours
- Gold futures rose for the fourth straight session on Wednesday to hit a three-month high as a broadly weaker U.S. dollar coupled with ongoing expectations that the Federal Reserve will hold off on hiking interest rates until 2016 boosted the appeal of the precious metal. gold prices gained in Asia Wednesday as weak prices data out of China highlighted prospects for continued easy monetary policies.
ECONOMY NEWS :
- China’s economic growth is expected to fall below 7 percent for the first time since the global financial crisis in the third quarter, putting pressure on policymakers to roll out more support measures as fears of a sharper slowdown spook investors. But even the government concedes the economy is entering a slower growth phase after decades of breakneck expansion.
- Japan and Iran have reached agreement on an investment accord, which may give a boost to Japanese investments into the Islamic Republic once sanctions are lifted as early as next year, the countries’ foreign ministers said in a statement.Japan is keen to boost ties with Iran and invest in resource projects there, as well as increase crude imports from the Middle Eastern country.
- UK consumer prices dropped 0.1 percent year-on-year in September, after staying flat in August, the Office for National Statistics showed Tuesday. Consumer prices last declined in April, when it was down 0.1 percent. Core inflation that excludes energy, food, alcoholic beverages and tobacco, remained unchanged at 1 percent in September. On a monthly basis, consumer prices slid 0.1 percent, confounding expectations for a flat change.
TRADING STRATEGY :
- BUY GOLD ABOVE 1170 TARGET 1175 1181 SL 1164
- SELL GOLD BELOW 1160 TARGET 1155 1149 SL 1166