INTERNATIONAL COMMODITY NEWS :
- Copper prices dropped to two-week lows on Thursday, after the Federal Reserve’s first rate hike in almost a decade pushed up the dollar, dampening demand for raw materials.Copper for March delivery on the Comex division of the New York Mercantile Exchange slumped 2.5 cents, or 1.22%, to trade at $2.046 a pound during morning hours in London.
- Oil prices fell back towards seven-year lows on Thursday, as ongoing jitters over a global supply glut coupled with a broadly stronger U.S. dollar weighed.On the ICE Futures Exchange in London, Brent oil for February delivery dropped 24 cents, or 0.64%, to trade at $37.15 a barrel during European morning hours.A day earlier, London-traded Brent plunged $1.34, or 3.41%, as worries that a global supply glut may stick around for longer than anticipated continued to weigh.
- Gold fell sharply in Europe on Thursday, as the U.S. dollar surged after the Federal Reserve raised interest rates for the first time in nearly a decade.Gold for February delivery on the Comex division of the New York Mercantile Exchange slumped $11.00, or 1.02%, to trade at $1,065.80 a troy ounce during European morning hours.
ECONOMY NEWS :
- The world’s central banks are scrambling to assess the risk a slowing China poses to their economies and appear to be no closer than most other observers to working out what is going on in the world’s second largest economy. While the Reserve Bank of Australia and the Bank of Japan have offices in Beijing, the U.S. Federal Reserve and the European Central Bank appear to rely on the same data – that may be flawed – as everyone else.
- The impact of the U.S. interest rate hike should be minimal in India as the country is relatively well cushioned, Chief Economic Adviser Arvind Subramanian said on Thursday.Policy makers, including Reserve Bank of India Governor Raghuram Rajan, have been touting India as being more insulated to Fed-related volatility than other emerging markets due to its better economic fundamentals.
- The European Union is seeking a fair deal that will provide a way out of a complicated questions over the future of Britain’s membership in the bloc, European Commission chief Jean-Claude Juncker said on Thursday.”We want a fair deal with Britain and this fair deal has to be a fair deal with other countries,” Juncker told a briefing in Brussels.”We’ll enter the concrete and vital phase of negotiations with our British colleagues. The Commission is ready to look for other options than the single one proposed by the British prime minister and I’m quite convinced that we will find a solution to that highly complicated question.”
TRADING STRATEGY :
- BUY GOLD ABOVE 1070 TARGET 1075 1081 SL 1064
- SELL GOLD BELOW 1060 TARGET 1055 1049 SL 1066