INTERNATIONAL COMMODITY NEWS :
- Gold prices rose on Tuesday, as the U.S. dollar pulled back from the prior session’s eight-month high.The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.4% to 99.87, off Monday’s eight-month peak of 100.35.Gold prices often move inversely to the U.S. dollar, as the precious metal becomes less expensive for buyers using other currencies.
- Copper prices edged higher on Tuesday, after a pair of disappointing manufacturing reports underlined concerns over the health of China’s economy.The downbeat data reinforced the view that the economy remains in the midst of a gradual slowdown which will require Beijing to roll out more support in coming months.Copper for March delivery on the Comex division of the New York Mercantile Exchange tacked on 1.2 cents, or 0.6%, to trade at $2.060 a pound during morning hours in London.
- Crude oil prices rose on Tuesday as the dollar eased slightly, but concerns about oversupply remained front of mind with OPEC expected to keep its output target unchanged at a policy meeting on Friday.U.S. crude was trading up 34 cents at $41.99 a barrel at 0226 ET, but was still down more than 10 percent since the start of November.
ECONOMY NEWS :
- Cash conditions in the Indian banking system are balanced and the central bank will inject long-term funds if needed, said Governor Raghuram Rajan on Tuesday.Interbank liquidity tightened sharply in November with banks seeing large amount of deposit withdrawals by the public for festival spending. That has created a shortage of funds as this cash typically comes back to banks after a lag of few months.
- Factory activity deteriorated across much of Asia in November, with China sinking to a three-year low, as policymakers braced for an expected rise in U.S. interest rates later this month that could jolt the global economy.Business surveys showed few signs of vigour across the trade-reliant region apart from Japan, with sluggish demand at home and abroad forcing manufacturers from China to Indonesia to throttle back production, cut selling prices and shed more jobs.
- Stable manufacturing and auto sales data are expected Tuesday after Monday’s weak Chicago-area manufacturing data, one of the few disappointing reports released in the lead-up to the impending interest rate hike by the U.S. Federal Reserve. The Institute of Supply Management (ISM) issues its purchasing managers index at 10 a.m. EST, 15 minutes after Markit Economics releases its own PMI. On Monday, a report showed Chicago-area manufacturing contracted in November.
TRADING STRATEGY :
- BUY GOLD ABOVE 1070 TARGET 1075 1086 SL 1064
- SELL GOLD BELOW 1065 TARGET 1060 1054 SL 1071