INTERNATIONAL COMMODITY NEWS :
- Oil futures recovered on Thursday, with West Texas Intermediate prices reclaiming the $40-level as market players looked ahead to Friday’s highly-anticipated OPEC meeting in Vienna.Media reports said that Saudi Arabia, which has so far resisted pressure to waver from its no-cut policy, will propose a supply cut of 1 million barrels per day, as long as other producers like Iran, Iraq and Russia join them.
- Gold prices sank to the lowest level in almost six years on Thursday, amid mounting expectations that the Federal Reserve will raise interest rates at its December policy meeting.Fed Chair Janet Yellen said on Wednesday that the central bank was still on track to hike rates this month, citing “continued improvement in the labor market” and “confidence that inflation will move back to our 2% objective over the medium term.”
- Copper prices fell to two-week lows on Thursday, 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.The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.25% to 100.30, re-approaching the prior session’s eight-month peak of 100.54.
ECONOMY NEWS :
- Asian Development Bank President Takehiko Nakao said on Thursday he did not expect U.S. interest rate rises to trigger a financial crisis in Asia, but the bank remains ready to lend support to vulnerable countries.The U.S. Federal Reserve is widely expected to raise interest rates for the first time in almost a decade at its next meeting Dec.15-16, raising some concern about capital flows out of Asia and emerging economies.
- Japan services sector continued to expand in November, but at a slower rate, with a PMI score of 51.6, the latest survey from Nikkei revealed on Thursday. That’s down from 52.2 in October, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction. Among the individual components, new orders expanded at a slower rate, while employment fell for a second straight month – although business sentiment strengthened. The composite PMI was steady at 52.3.
- China’s services Purchasing Managers’ Index fell to 51.2 in November from October’s three-month high of 52.0, survey data published by Markit showed Thursday. The Caixin composite output index rose to 50.5 in November from 49.9 in October. The score exceeded the neutral 50 mark for the first time in four months. Meanwhile, manufacturing production stabilized in November, following a six-month sequence of reduction.
TRADING STRATEGY :
- BUY GOLD ABOVE 1055 TARGET 1060 1066 SL 1049
- SELL GOLD BELOW 1045 TARGET 1040 1034 SL 1051