INTERNATIONAL COMMODITY NEWS :
- Copper prices fell from the prior session’s five-week high on Tuesday, but losses were limited amid speculation 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 shed 1.4 cents, or 0.64%, to trade at $2.126 a pound during morning hours in London.
- Oil prices regained ground on Tuesday, one day after sinking to multi-year lows on the back of ongoing concerns over a global supply glut.On the ICE Futures Exchange in London, Brent oil for February delivery tacked on 25 cents, or 0.69%, to trade at $36.60 a barrel during European morning hours. A day earlier, prices fell to $36.04, a level not seen since July 2004.
- Gold inched lower after a sharp two-day rally on Tuesday, as investors looked ahead to key U.S. economic data later in the session for further indications on the strength of the economy.Gold for February delivery on the Comex division of the New York Mercantile Exchange shed $3.30, or 0.31%, to trade at $1,077.30 a troy ounce during European morning hours.
ECONOMY NEWS :
- The Japanese government is planning nearly $800 billion of record spending in the next fiscal year to shore up a fragile economy, with Tokyo also promising to rein in a bulging debt burden in an expansionary budget set to be unveiled this week.Finance Minister Taro Aso on Tuesday vowed to boost growth and achieve fiscal reform with government budget spending worth 96.7 trillion yen (£535.54 billion) for the next fiscal year that starts in April. This is up a touch from the 96.3 billion yen spending set for the current year’s initial budget.
- Continued asset sales by India’s most indebted firms should help private equity players notch up a bumper 2016 in Asia’s third-largest economy, with more and larger deals sealing a revival begun with record investments this year. Private equity purchases are set to reach a new high of $10.89 billion this year, surpassing the high water mark set in 2007, according to Thomson Reuters data. In 2014, private equity investments totalled just $6 billion.
- New European Union rules on bank rescues, aimed at ending spectacular bailouts with public money, are already facing a political backlash on worries they may end up hurting small, unsophisticated investors. The EU’s Bank Recovery and Resolution Directive, due to become fully effective on Jan. 1, makes shareholders, creditors and even large depositors liable for the losses of a failing bank before any public money is used to save the lender.
TRADING STRATEGY :
- BUY GOLD ABOVE 1080 TARGET 1085 1091 SL 1075
- SELL GOLD BELOW 1075 TARGET 1070 1064 SL 1081