INTERNATIONAL COMMODITY NEWS :
- Crude oil futures were pressured on Tuesday by oversupply and worries the dollar will strengthen when the U.S. Federal Reserve eventually raises interest rates. “Crude continues to remain under pressure due to emerging supply-side news and slowing Chinese demand. Russian oil output broke a post-Soviet record in October for the fourth time this year. News from Iran is also painting a negative picture,” ANZ said in a morning note.
- Copper prices struggled near four-week lows on Tuesday, as persistent worries about future demand from top consumer China weighed.Copper for December delivery on the Comex division of the New York Mercantile Exchange shed 0.5 cents, or 0.23%, to trade at $2.314 a pound during morning hours in London.A day earlier, copper prices fell to $2.288, the lowest since October 2, after a pair of disappointing manufacturing reports underlined concerns over the health of China’s economy.
- Gold prices struggled to move away from the lowest level in four weeks on Tuesday, amid speculation the Federal Reserve will raise interest rates at its next meeting in December.Gold for December delivery on the Comex division of the New York Mercantile Exchange shed 60 cents, or 0.05%, to trade at $1,135.30 a troy ounce during European morning hours. Gold had rallied in October as concerns over a global economic slowdown led by China and its impact on U.S. growth prospects had prompted market participants to push back expectations for a rate increase to March 2016.
ECONOMY NEWS :
- The global economy is expanding at a moderate pace, with some further softening inconditions in the Asian region, continuing US growth and a recovery in Europe, noted theReserve Bank Of Australia (RBA) in a statement after it decided to leave its cash rateunchanged at 2%. Key commodity prices are much lower than a year ago, in part reflectingincreased supply, including from Australia. Australia’s terms of trade are falling.
- European Central Bank board members have regularly met with banks and hedge funds privately just days before interest rate decisions, when typical practise prohibits them from discussing monetary policy, documents released by the bank showed. The ECB’s transparency has come under heightened scrutiny since board member Benoit Coeure told a closed-door meeting in May that the bank would front-load its asset purchases during the summer months, sending the euro sharply lower the next day when the remarks were made public.
- Japan’s new car sales in October dropped 4.1% from a year earlier to 380,089 units. For the 10th straight monthly year-on-year drop, sales of minivehicles which have engines no larger than 660 cc fell around 11% to 139,200 units, the Japan Light Motor Vehicle and Motorcycle Association (JAMA) said in a latest update. However, sales of vehicles other than minivehicles edged up 0.2% to 240,889 units from the previous year following a 3% drop in the previous month.
TRADING STRATEGY :
- BUY GOLD ABOVE 1135 TARGET 1140 1146 SL 1129
- SELL GOLD BELOW 1128 TARGET 1113 1107 SL 1134