INTERNATIONAL COMMODITY NEWS :
- Gold struggled near six-year lows on Monday, as a broadly stronger U.S. dollar combined with growing confidence the Federal Reserve will raise interest rates when in meets next month continued to weigh. Gold for February delivery on the Comex division of the New York Mercantile Exchange dipped 50 cents, or 0.05%, to trade at $1,055.70 a troy ounce during European morning hours.
- Copper prices edged lower on Monday, as ongoing strength in the U.S. dollar weighed on the red metal. Dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains. Copper for March delivery on the Comex division of the New York Mercantile Exchange dipped 0.6 cents, or 0.31%, to trade at $2.057 a pound during morning hours in London.
- Brent crude futures dipped on Monday as traders remained cautious ahead of an Opec meeting later this week and as a widely expected US interest rate hike strengthened the dollar.Oil prices are heading for declines of as much as 10 percent this month, with a supply glut showing no signs of easing and a firmer US dollar making greenback-denominated contracts more expensive for holders of other currencies.
ECONOMY NEWS :
- Japan’s Government Pension Investment Fund (GPIF) — the world’s largest pension fund — reported its worst quarterly loss in the three months ending September, as a global stock market rout wiped off 7.9 trillion yen ($64.2 billion) of its investments. The loss was GPIF’s first since last October, when it decided to double its allocation of equities to cut down dependence on government bonds.
- Private money is expected to fund part of a $20 billion rail tunnel project linking New Jersey with Manhattan, according to a senior executive at the national rail network Amtrak.Amtrak’s plan to build a new two-track tunnel under the Hudson River and revamp its rail infrastructure in the region got a boost earlier this month when the federal government agreed to foot half of the bill.
- The Federal Reserve Board will consider on Monday a proposal to curb its emergency lending powers, a change demanded by Congress after the central bank’s controversial decision to aid AIG (N:AIG), Citigroup (N:C) and others in 2008.A proposed rule, to be considered by the Fed’s Washington-based board in an open meeting, would require that any future emergency lending be only “broad-based” to address larger financial market problems, and not tailored to specific firms.
TRADING STRATEGY :
- BUY GOLD ABOVE 1060 TARGET 1065 1071 SL 1054
- SELL GOLD BELOW 1155 TARGET 1150 1144 SL 1161