INTERNATIONAL COMMODITY NEWS :
- Oil prices steadied on Thursday but were still headed for a second year of steep declines after a race to pump by Middle East crude producers and U.S. shale oil drillers created an unprecedented global glut that may take through 2016 to clear. Global oil benchmark Brent and U.S. crude’s West Texas Intermediate (WTI) futures were on track finish 2015 down more than 30 percent after another year that showed the helplessness of Saudi Arabia and others in the once-powerful Organization of the Petroleum Exporting Countries (OPEC) to support oil prices.
- Gold prices struggled for direction in quiet trade on Thursday, as volumes were thin ahead of the New Year holiday. The precious metal is on track to post an annual decline of approximately 11% in 2015, the third yearly loss in a row, as speculation over the timing of a Federal Reserve rate hike dominated sentiment for most of the year.
- Natural gas futures held on to sharp gains on Thursday, the last trading day of the year, after data showed U.S.natural gas supplies in storage fell more than expected last week.Natural gas for delivery in February on the New York Mercantile Exchange rallied 11.1 cents, or 5.04%, to trade at $2.325 per million British thermal units during U.S. morning hours. Prices were at around $2.333 prior to the release of the supply data.
ECONOMY NEWS :
- China’s official manufacturing Purchasing Managers’ Index (PMI) stood at 49.7 in December- staying in contraction for fifth straight month. The latest reading is slightly better than the 49.6 in registered in November, which represented a three-year low. Although PMI slightly rebounded this month, it still lies below the critical point and is lower than historic levels over the same period. The figures are the latest to highlight a growth slowdown in the economy, which expanded 6.9% in July-September, the weakest rate since the 2009, during the global financial crisis.
- Further lowering the outlook for Indian exports to USD 255-260 billion for fiscal 2015-16, ASSOCHAM maintained that the sector is in real crisis which goes well beyond petroleum products, gems and jewellery to highly job-oriented leather and leather products and has engulfed the entire agri exports witnessing sharp falls. The country’s merchandise exports in 2014-15 were USD 310 billion and the ASSOCHAM had inSeptember this year had forecast the overseas shipments to be around USD 265-268 billion.
- A public review of Britain’s banking culture has been scrapped just months after it was announced, with the UK regulator saying on Thursday it had opted instead to work with lenders individually to address any concerns. The move will likely add to the public perception that the Financial Conduct Authority (FCA) is softening its approach after several years of “banker bashing” following the 2007-2009 financial crisis.
TRADING STRATEGY :
- BUY GOLD ABOVE 1064 TARGET 1069 1076 SL 1058
- SELL GOLD BELOW 1057 TARGET 1052 1046 SL 1063