INTERNATIONAL COMMODITY NEWS :
- Gold and silver struggled near five-and-a-half-year lows on Monday, as investors braced for a hike in interest rates by the Federal Reserve next month.Gold for December delivery on the Comex division of the New York Mercantile Exchange shed $4.40, or 0.41%, to trade at $1,071.90 a troy ounce during European morning hours.
- Copper prices fell to the lowest level since May 2009 on Monday, as the possibility of higher interest rates in the U.S., a broadly stronger U.S. dollar and slower global economic growth, especially in China, weighed. Copper for December delivery on the Comex division of the New York Mercantile Exchange shed 3.7 cents, or 1.82%, to trade at $2.017 a pound during morning hours in London.
- Crude futures plunged on Monday, with U.S. oil dropping more than 3 percent on a firmer U.S. dollar and festering worries over a global supply surplus.The fall was part of a wider decline in commodities that has also been stoked by worries over faltering demand from China, with prices for base metals such as copper and nickel tumbling.
ECONOMY NEWS :
- Austria’s Finance Minister Hans Joerg Schelling said on Monday he expected the country’s 2016 budget to meet European Commission’s criteria on deficits as some of costs for dealing with migrants would be taken out of the calculations.Earlier this month, the European Commission said Austria, as well as Italy, Lithuania and Spain, risked breaking European Union rules with their budget plans.
- India will sell shares in some state-run companies when market conditions improve, Finance Minister Arun Jaitley said on Monday, as the government struggles to meet its asset sales target that is crucial to help plug its deficit.India has raised just about $2 billion, or less than 20 percent of its divestment target, so far this year. Jaitley also said he expected recent steps taken by the government and the central bank to improve asset quality of state-run banks in a “reasonable” time. Indian banks have been burdened with their highest bad loan ratio in a decade.
TRADING STRATEGY :
- BUY GOLD ABOVE 1075 TARGET 1081 1087 SL 1069
- SELL GOLD BELOW 1065 TARGET 1060 1054 SL 1071