INTERNATIONAL COMMODITY NEWS :
- Oil prices were little changed on Tuesday, one day after plunging more than 3% amid ongoing concerns over a global supply glut.Trading volumes are expected to remain light in the final few days of the year as many traders already closed books due to the holiday period, reducing liquidity in the market which could result in exaggerated moves.
- Gold prices inched higher in familiar range on Tuesday, as investors kept an eye on upcoming U.S. data to gauge if the world’s largest economy is strong enough to withstand further rate hikes in 2016.Trading volumes are expected to remain light in the final few days of the year as many traders already closed books due to the holiday period, reducing liquidity in the market which could result in exaggerated moves.
- Copper futures surged by more than 1 per cent during late morning trade in the domestic market on Tuesday as investors and speculators booked fresh positions in the industrial metal as hopes of fresh stimulus by China eased concerns over a hard landing in the world’s second biggest economy bolstering the demand outlook for copper. Optimism rose that the Chinese government’s continued cash injection to prop up the country’s stock market may help combat a lingering economic slowdown.
ECONOMY NEWS :
- Bank of Japan board member Yukitoshi Funo said the central bank will look at the long-term economic trend in guiding monetary policy and won’t expand stimulus automatically in response to short-term dips in prices, according to the Nikkei newspaper.Funo, a former executive of Toyota Motor Corp (T:7203) who joined the nine member board in July, also said Japan is on track to meet the central bank’s 2 percent inflation target as companies are steadily raising prices of their goods.
- China’s central bank has temporarily suspended some foreign exchange businesses of several foreign banks until the end of March, three sources with direct knowledge of the development told Reuters on Wednesday. Included among the suspended services was liquidation of spot positions for clients and some other services related to cross-border, onshore and offshore businesses, the sources said.
- Germany’s federal states are planning to spend around 17 billion euros ($18.7 billion) on dealing with the refugee crisis in 2016, the newspaper Die Welt said on Tuesday, citing a survey it conducted among their finance ministries. The sum, bigger than the 15.3 billion euros that the central government planned to allocate to its education and research ministry in 2015, is a measure of the strain that the influx is causing across the country as a whole.
TRADING STRATEGY :
- BUY GOLD ABOVE 1075TARGET 1080 1086 SL 1069
- SELL GOLD BELOW 1070 TARGET 1065 1059 SL 1076