INTERNATIONAL COMMODITY NEWS :
- Copper futures slumped to a five-week low on Monday, after latest trade figures out of China added to concerns over the health of the world’s second-biggest economy.Copper for December delivery on the Comex division of the New York Mercantile Exchange declined 0.8 cents, or 0.33%, to trade at $2.234 a pound during morning hours in London. It earlier fell to $2.228, the lowest since August 24.
- Gold prices struggled near three-month lows on Monday, as investors continued to cut holdings of the precious metal amid growing expectations 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 inched up $4.30, or 0.4%, to trade at $1,092.00 a troy ounce during European morning hours.
- Crude oil prices rebounded in Asia on Monday in response to last week’s ahrp fall in the U.S. with disappointing Chinese trade data shrugged off for now.On the New York Mercantile Exchange, crude oil for delivery in December rose 0.86% to $44.44 a barrel.On Sunday, China said the October trade surplus came in at $61.64 billion, a tad more than $60.34 billion in September, with exports down 6.9% as imports slumped 18.8%.October’s trade surplus came in at a new monthly record due to a steeper drop in imports rather than any improvement in exports.
ECONOMY NEWS :
- Global regulators set out their “final tools” on Monday for ending the phenomenon of “too big to fail” banks, seeking to draw a line under a period of intensive rule making after a financial crisis that tarnished the sector and weighed heavily on taxpayers. Mark Carney, chairman of the Financial Stability Board (FSB), which coordinates regulation across the Group of 20 economies (G20) to plug gaps highlighted by the 2007-09 financial crisis, said many of the key reforms have been implemented decisively and promptly.
- Prime Minister David Cameron favors holding a referendum on Britain’s European Union membership in June next year if leaders of other member states agree to the bulk of his reform plans at a December summit, The Times newspaper reported on Monday.Cameron has promised to renegotiate Britain’s ties with the 28-nation bloc ahead of a membership vote by the end of 2017.
- 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. German industrial production in the third quarter contracted 0.3% from the previous quarter.
TRADING STRATEGY :
- BUY GOLD ABOVE 1095 TARGET 1100 1107 SL 1088
- SELL GOLD BELOW1085 TARGET 1080 1074 SL 1091