INTERNATIONAL COMMODITY NEWS :
- Crude oil prices edged up on Friday after falling over 2 percent the previous session, with analysts saying oversupply and a strong dollar would continue to weigh on fuel markets.U.S. crude futures (CLc1) were trading at $45.53 a barrel at 0700 GMT, up 33 cents from their last settlement, while Brent crude (LCOc1) rose 27 cents to $48.25 a barrel, but the gains followed steep falls the previous day on the back of climbing U.S.
- Gold prices regained some ground in European morning hours on Friday, but gains were limited as investors remained cautious ahead of the upcoming report on U.S. nonfarm payrolls due later in the day. On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.40% at $1,108.60.
- Taking positive cues from overseas markets, copper prices moved up by 0.24% to Rs 338.55 per kg in futures trade today as speculators created fresh positions.Besides, pick up in demand from consuming industries in the spot market supported the upside.At the Multi Commodity Exchange, copper for delivery in far-month February rose by 80 paise, or 0.24%, to Rs 338.55 per kg in a business turnover of 72 lots.Similarly, the metal for delivery in November traded higher by 50 paise, or 0.15%, to Rs 330.60 per kg in 2,656 lots.
ECONOMY NEWS :
- UK industrial production declined 0.2 percent in September from August, when it was up 0.9 percent, data from the Office for National Statistics showed Friday. It was expected to fall marginally by 0.1 percent. Meanwhile, manufacturing output growth improved to 0.8 percent from 0.4 percent in August and exceeded the expected growth of 0.6 percent. On a yearly basis, growth in industrial production eased to 1.1 percent from 1.8 percent a month ago. At the same time, manufacturing slid 0.6 percent after falling 0.9 percent in August.
- German Industrial output dropped for the second straight month in September, as weak demand from China, Russia and other developing economies is damaging the European manufacturing powerhouse. The industrial production, adjusted for seasonal swings and calendar effects, dropped 1.1% in September from the previous month. The volume of total industrial output was the lowest in almost one year. Businesses have trimmed production somewhat in light of the restrained orders intake in the third quarter.
- The US economy is likely in an above-potential growth phase, with labor markets continuing to improve, and with an underlying inflationary trend that, if not rapidly moving toward the FOMC’s objective, is at least not moving away from that objective, stated Dennis Lockhart, the president of the Atlanta Fed in a latest speech. He noted that the US economy is transitioning from a period of extraordinary policy to normal policy
TRADING STRATEGY :
- BUY GOLD ABOVE 1091 TARGET 1096 1102 SL 1085
- SELL GOLD BELOW 1085 TARGET 1080 1074 SL 1091