INTERNATIONAL COMMODITY NEWS :
- Copper prices inched up on Wednesday, after data showed that Chinese consumer price inflation rose last month, indicating that Beijing’s effort to bolster growth in the world’s second-largest economy may be starting to take effect. The National Bureau of Statistics reported that China’s consumer price index rose 1.5% in November from a year earlier, slightly better than economists’ forecast for an increase of 1.4% after a 1.3% rise in October.
- Gold edged higher on Wednesday, aided by weakness in the U.S. dollar, but the metal’s upside remained limited as market players prepared for a U.S. rate hike this month.The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.15% to 98.27. Dollar-priced commodities become cheaper to investors holding other currencies when the greenback declines.
- West Texas Intermediate oil futures rebounded on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories fell for the first time in 11 weeks.The U.S. Energy Information Administration will release its weekly report on oil supplies at 10:30AM ET Wednesday. The data was expected to show that crude inventories rose by 252,000 barrels last week
ECONOMY NEWS :
- The emerging economies are facing their fifth consecutive year of slow growth, theWorld Bank noted in a latest update. In a new policy research note ‘Slowdown in Emerging Markets: Rough Patch or Prolonged Weakness?’, the World Bank said Since 2010, emerging market growth has been buffeted by global headwinds such as weak international trade,slowing capital flows, and slumping commodity prices, external challenges which have compounded domestic problems including blunted productivity and bouts of politicaluncertainty.
- Bank of England policymakers differed last month on how soon they might increase the amount of capital banks must hold against economic downturns, the central bank said on Wednesday.Last week the central bank said British banks had nearly completed the job of building up their capital defences, and stopped short of any immediate action to curb lending to consumers or small-scale property investors.
- Markets failed to assess properly the signals the European Central Bank was sending last week, Governing Council member Ewald Nowotny said on Wednesday, adding that analysts rather than the ECB were to blame for any misunderstanding. The ECB eased monetary policy further last week to fight stubbornly low inflation but kept some of its powder dry, disappointing high market expectations of greater stimulus
TRADING STRATEGY :
- BUY GOLD ABOVE 1080 TARGET 1085 1091 SL 1074
- SELL GOLD BELOW 1075 TARGET 1070 1064 SL 1081