INTERNATIONAL COMMODITY NEWS :
- Gold prices inched higher on Wednesday, as investors awaited key U.S. data later in the day for further indications on the strength of the economy and the likelihood of a near-term interest rate hike.The U.S. was to release the ADP jobs report for November at 8:15AM ET. Market players will also pay close attention to a speech by Federal Reserve Chair Janet Yellen on the U.S. economic outlook at 12:25PM ET.
- Copper prices traded near a one-week high on Wednesday, after Chinese metal producers pledged to cut production of the red metal to combat falling prices.Copper for March delivery on the Comex division of the New York Mercantile Exchange dipped 0.2 cents, or 0.08%, to trade at $2.072 a pound during morning hours in London. It earlier rose to $2.085, the highest since November 27.
- Oil prices fell on Wednesday as an unexpected rise in inventories pulled down U.S. crude contracts, while Brent was weighed down by China’s bleak economic outlook and a widespread expectation that OPEC will maintain high production.U.S. crude (CLc1) was trading down 22 cents at $41.63 per barrel at 0628 GMT (0128 ET), more than 10 percent below the start of November.
ECONOMY NEWS :
- Chinese Consumer confidence towards the car market slipped further again in November.Chinese consumers were slightly more enthusiastic about the car purchasing environment,although a rise in expected running costs dragged overall sentiment down. That said, aslight improvement in car purchase expectations, though still below the neutral 100 levelthat separates pessimists from optimists, may suggest car sales will help underpin overall-market sentiment in the near term.
- Eurozone unemployment rate dropped marginally to 10.7 percent in October from 10.8 percent in September, Eurostat reported Tuesday. This was the lowest rate since January 2012. It was forecast to stay at 10.8 percent in October. Meanwhile, German unemployment dropped to a record low even as rising fears of joblessness due to the huge influx of migrants hurt consumer sentiment in the biggest euro area economy.
- The US Federal Reserve should move gradually and cautiously to raise interest rates given the state of the economy, Federal Reserve Governor Lael Brainard stated yesterday. In a speech at Stanford University, Brainard noted that three factors – the poor outlook for the global economy, investor caution in the wake of the crisis and low productivity growth translate into a low-interest-rate economic environment.
TRADING STRATEGY :
- BUY GOLD ABOVE 1070 TARGET 1075 1086 SL 1064
- SELL GOLD BELOW 1065 TARGET 1060 1054 SL 1071