INTERNATIONAL COMMODITY NEWS :
- Crude oil futures declined by Rs 29 to Rs 2,485 per barrel today in line with a weak trend in Asian trade.In futures trade at the Multi Commodity Exchange, crude oil for delivery in January 2016 shed Rs 29, or 1.15%, to Rs 2,485 per barrel, with a business volume of 2,048 lots.Oil prices for far-month February delivery moved down by Rs 23, or 0.89%, to trade at Rs 2,574 per barrel with a business volume of 51 lots.
- Gold was little changed on Wednesday as thin liquidity and a firmer dollar capped price moves, although the metal remained on track to close the year lower for a third time in a row. The precious metal has lost nearly 10 percent of its value this year, largely on fears that higher U.S. interest rates would hurt demand for non-interest paying bullion.
- Nickel futures traded 0.31% lower at Rs 573.90 per kg today amid a weakening trend at the London Metal Exchange (LME) and sluggish demand from alloy-makers in the domestic spot market.At the Multi Commodity Exchange, nickel for delivery in current month shed Rs 1.80, or 0.31%, to Rs 573.90 per kg in a business turnover of 501 lots. Metal for delivery in January 2016 was also trading lower by Rs 1.70, or 0.29%, at Rs 580.20 per kg in a turnover of 143 lots.
ECONOMY NEWS :
- Eurozone money supply increased at a slower pace in November, the European Central Bank reported Wednesday. The broad monetary aggregate M3 edged up 5.1% year-on-year in November, slower than October’s 5.3% increase. Further, data showed that annual growth rate of total credit to euro area residents rose to 2.7% in November from 2.3% in the previous month. On supportive side, credit to the private sector increased 1.2% after clocking 1% growth a month ago.
- Global economic growth will be disappointing next year and the outlook for the medium-term has also deteriorated, the head of the International Monetary Fund said in a guest article for German newspaper Handelsblatt published on Wednesday.IMF Managing Director Christine Lagarde said the prospect of rising interest rates in the United States and an economic slowdown in China were contributing to uncertainty and a higher risk of economic vulnerability worldwide.
- British wage growth next year is likely to fall far short of the expectations of the Bank of England (BoE) and government as employers hold back on pay rises in the face of growing costs, an industry body said on Wednesday. The Chartered Institute of Personnel Development (CIPD) said pay growth will stay stuck at about 2 percent for most or all of 2016, well below forecasts of about 3.5 percent from the BoE and Office for Budget Responsibility.
TRADING STRATEGY :
- BUY GOLD ABOVE 1073 TARGET 1078 1085 SL 1067
- SELL GOLD BELOW 1065 TARGET 1060 1055 SL 1071