INTERNATIONAL COMMODITY NEWS :
- Crude palm oil futures were up by 0.75% to Rs 389.10 per 10 kg in futures trade today as speculators created fresh positions amid a firming trend at the spot markets on rising demand from consuming industries.Besides, tight supplies from major producing belts too supported crude palm oil futures.
- Copper prices inched up on Tuesday, but remained not far above the prior session’s six-year low as expectations of higher interest rates in the U.S., a broadly stronger U.S. dollar and slower global economic growth, especially in China, weighed. Meanwhile, three-month copper on the London Metal Exchange rose 0.87% to $4504.75 a metric ton. On Monday, prices hit $4508.50, the weakest level since June 2009.
- Gold inched up on Tuesday, but remained not far above the prior session’s five-and-a-half-year low as investors awaited the release of revised U.S. third quarter economic growth data later in the day for a fresh reading on the strength of the economy. Gold futures are down more than 6% so far this month amid mounting expectations the Fed will raise rates for the first time in nearly a decade at its mid-December meeting.
ECONOMY NEWS :
- India’s leading index, which measures the future economic activity, rose 1.2 percent in October, reversing a 0.6 percent fall in the previous month, figures from the Conference Board showed Monday. In September, the index had fallen 0.3 percent. All sub-components contributed positively to the index in October. The coincident index that reflects the current economic activity, also went up 1.5 percent in October, in contrast to a 1.8 percent drop in September.
- Japan’s Markit/Nikkei Manufacturing Purchasing Managers’ Index, or PMI, rose to 52.8 in November from 52.4 in October, data showed Tuesday. A score above 50 indicates expansion in the sector. Manufacturing output continued to grow sharply in November and the latest rate of increase was the fastest since March 2014. At the same time, new orders rose at a slower rate in November, while growth in exports orders accelerated to a five-month high.
- German business confidence strengthened to 109 in November from 108.2 in October, citing results of a survey by the Ifo Institute. It was expected to remain unchanged at 108.2. The current conditions index came in at 113.4. The expectations index also strengthened in November. The corresponding index rose to 104.7 from about 103.8 in previous month. It was above the expected reading of 104.
TRADING STRATEGY :
- BUY GOLD ABOVE 1075 TARGET 1080 1086 SL 1069
- SELL GOLD BELOW 1065 TARGET 1060 1054 SL 1071