INTERNATIONAL COMMODITY NEWS :
- Copper prices rose to a more than one-week high on Monday, amid speculation that Chinese metal producers will scale back production to combat falling prices.Copper for March delivery on the Comex division of the New York Mercantile Exchange inched up 0.3 cents, or 0.16%, to trade at $2.116 a pound during morning hours in London. It earlier rose to $2.121, the highest since December 11.
- Brent oil sank to the lowest level since July 2004 on Monday, as ongoing jitters over a global supply glut drove down prices.On the ICE Futures Exchange in London, Brent oil for February delivery dropped 44 cents, or 1.21%, to trade at $36.44 a barrel during European morning hours. It earlier fell to $36.05, a level not seen in more than 11 years. London-traded Brent futures slumped 97 cents, or 2.77%, last week, the third consecutive weekly decline. Brent prices are on track to post an annual decline of 36% in 2015, as oversupply concerns dominated market sentiment for most of the year.
- Gold rose on Monday, adding to Friday’s gains amid skepticism over the Federal Reserve’s ability to raise interest rates as much as it would like next year.Gold for February delivery on the Comex division of the New York Mercantile Exchange tacked on $4.00, or 0.38%, to trade at $1,069.00 a troy ounce during European morning hours. On Friday, gold jumped $15.40, or 1.47%.
ECONOMY NEWS :
- The Indian government on Monday introduced a bill in parliament aimed at bringing sweeping changes to an outdated and overburdened bankruptcy system, setting deadlines for the first time for processing insolvency cases. At present, Asia’s third-largest economy has competing laws with unclear jurisdictions to deal with the liquidation or revival of companies.
- Bank of Japan Governor Haruhiko Kuroda said on Monday that recent changes to the central bank’s debt purchase programme gives it the flexibility to expand monetary easing if needed, according to a government official. Kuroda, who spoke at a meeting of cabinet ministers, said the changes to its quantitative easing will allow it to quickly respond to any changes in the economic outlook, according to the government official.
- Staff at smaller banks in the European Union should not have to defer large chunks of their bonuses over several years, the bloc’s European Banking Authority (EBA) watchdog said on Monday. After the 2007-09 financial crisis, the European Union introduced rules to stop bankers from taking excessive risks to win bigger bonuses and because state bailouts of failed banks had angered taxpayers.
TRADING STRATEGY :
- BUY GOLD ABOVE 1075 TARGET 1080 1086 SL 1069
- SELL GOLD BELOW 1065 TARGET 1060 1054 SL 1071