INTERNATIONAL COMMODITY NEWS :
- Gold prices slipped lower in European morning hours on Friday, as expectations for a U.S. rate hike next week continued to support demand for the greenback and to weigh on demand for the precious metal. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were down 0.20% at $1,069.90.
- Taking weak cues from overseas markets, silver prices fell by Rs 114 to Rs 34,518 per kg in futures trade today, as participants trimmed positions.In futures trading at the Multi Commodity Exchange, silver for delivery in far-month May next year shed Rs 114 or 0.33% to Rs 34,518 per kg in a business turnover of 7 lots.
- US crude prices remained near 2009 lows in early Asian trading on Friday as oil output in the Middle East continued to rise despite an existing global glut.US crude futures were at $36.67 per barrel at 0029 GMT, down 9 cents from their last settlement, and only slightly above 2009 lows of $36.38 reached on Thursday.
ECONOMY NEWS :
- Greek Prime Minister Alexis Tsipras’ governing majority is looking fragile as crunch time approaches for a pension reform that will test his resolve to impose painful measures to satisfy Athens’ international creditors. The coalition of Tsipras’ leftist Syriza party and the right-wing nationalist Independent Greeks has a majority of just three seats in parliament, and pro-European opposition parties that voted for Greece’s latest bailout are publicly refusing him any help on the toxic pension issue.
- The Reserve Bank of India did not accept all the bids at its 150-billion-rupee ($2.24 billion) government bond sale on Friday, including for the benchmark 10-year debt, marking the second week in a row when it has rejected some of the bids.The RBI accepted only 49.4 billion rupees worth of bids for its 70-billion-rupee sale of 2025 bonds IN077225G=CC , and accepted only 22.9 billion rupees of the 30 billion rupees worth of 2034 bonds being sold. The remaining three bonds were fully allocated.
- The European Central Bank’s policy measures, including its recently extended asset-purchase programme,are delivering “tangible results” and will bring inflation back to the bank’s target, the ECB’s chief economist said on Friday.”This complex package of policy measures has led to a significant easing in borrowing rates for the broad economy and should thereby continue to contribute to… the return of inflation rates in the medium term to levels closer to 2 percent,” Peter Praet said.
TRADING STRATEGY :
- BUY GOLD ABOVE 1075 TARGET 1080 1086 SL 1069
- SELL GOLD BELOW 1070 TARGET 1065 1059 SL 1076