INTERNATIONAL COMMODITY NEWS :
- Gold rose Rs 21 to Rs 27,097 per 10 grams in futures trading today as speculators widened bets, tracking a firming trend overseas.At the Multi Commodity Exchange, gold for delivery in far-month February next year edged higher by Rs 21, or 0.08%, to Rs 27,097 per 10 grams, in a business turnover of three lots.
- Anglo America Copper production decreased by 3% to 171,100 tonnes, largely driven by the sale of the Norte assets, effective for reporting from 1 September2015.Production from retained operations increased by 1%. Production from Los Bronces increased by3% to 98,600 tonnes.Higher grade material was processed to offset water con- straints during July and August. High levels of plant throughput were achieved in September .
- Oil prices rose on Friday, finding support from brighter economic data and a global stock market rally after the European Central Bank signaled more stimulus.Benchmark Brent crude oil was 20 cents higher at $48.28 a barrel by 5.05 a.m. ET after settling up 23 cents in the previous session. U.S. crude for December was unchanged at $45.38 a barrel, having risen 18 cents on Thursday.
ECONOMY NEWS :
- US housing market is looking in a good nick. After reporting a massive drop in US existing home sales in the previous month, the National Association of Realtors (NAR) reported yesterday that existing home sales rebounded. NAR said existing home sales jumped 4.7% to an annual rate of 5.55 million in September. The report said the median existing home price for September was $221,900, which is down 2.9% from $228,500 in August but up 6.1% from $209,100 a year ago.
- India’s central bank said on Thursday it will allow lenders to count short-term bullion deposits under the gold monetisation scheme as part of their cash reserve ratio or statutory liquidity ratios, increasing the appeal of the plan for the sector. The measure was part of the Reserve Bank of India’s guidelines for the gold scheme, which is intended to lure Indian households to deposit gold at lenders in exchange for interest rate payments.
- The Bank of Japan will cut its growth and inflation outlook for this fiscal year at a rate review next week but only slightly tweak its projections for next year, sources said, possibly tempering expectations that the central bank will soon ease monetary policy further. Finance Minister Taro Aso also expressed doubt on Friday that further monetary stimulus would help achieve the inflation target.
TRADING STRATEGY :
- BUY GOLD ABOVE 1178 TARGET 1183 1189 SL 1172
- SELL GOLD BELOW 1162 TARGET 1157 1151 SL 1168