INTERNATIONAL COMMODITY NEWS :
- Gold traded narrowly higher in Asia on Tuesday with investors largely on the sidelines ahead of this week’s Federal Reserve meeting widely expected to hike interest rates.On the Comex division of the New York Mercantile Exchange, gold for February delivery inched 0.08% up to $1,064.20 a troy ounce.Crude oil prices in Asia on Tuesday failed to hold gains from the U.S. as investors continued to monitor massive over supply.
- On the New York Mercantile Exchange, WTI crude for January delivery fell 0.185% to $36.25 a barrel. Ahead on Tuesday, the American Petroleum Institute will release estimates ofU.S. crude and refined product stockpiles held last week. That will be followed Wednesday by more closely-watched figures from the U.S. Department of Energy.
- The once-deep discount for benchmark U.S. crude oil prices versus global rates is about to disappear for the first time since the rise of the shale oil boom, a sudden reversal that highlights the market’s ongoing flux. On Monday, U.S. West Texas Intermediate for delivery in March settled just 6 cents below global Brent crude for the same month, the narrowest gap since 2010. It was trading at more than $1 a barrel two days ago.
ECONOMY NEWS :
- Germany will lay out a climate action plan for 2050 by the middle of next year and is talking to industry groups and trade unions about ways to end coal-fired power generation, its Environment Minister said on Monday. Global leaders clinched a breakthrough deal in Paris on Saturday to transform the world’s fossil fuel-driven economy within decades in a bid to arrest global warming.
- The wave of refugees flooding into Austria could bolster the country’s economic growth if Vienna continues to work on integrating them quickly, the International Monetary Fund (IMF) said on Monday.Hundreds of thousands of migrants, many of them fleeing war and poverty in the Middle East, Afghanistan and elsewhere, have reached Austria since early September, most continuing on into neighboring Germany.
- The sell off in the bellwether high risk corporate debt market is spreading fears that the U.S. economy is on less sound footing than investors thought.On Monday, the widely-traded iShares iBoxx $ High Yield Corporate Bond ETF – essentially a basket of junk debt -expanded its losses for the year to 12 percent. A competitor product, the SPDR Barclays (L:BARC) High Yield Bond ETF, expanded its losses for the year to 13.4 percent.
TRADING STRATEGY :
- BUY GOLD ABOVE 1070 TARGET 1075 1082 SL 1065
- SELL GOLD BELOW 1063 TARGET 1058 1052 SL 1068