INTERNATIONAL COMMODITY NEWS :
- Copper prices tumbled to six-week lows on Thursday, as steep declines on Chinese stock markets and a further depreciation of the yuan dampened appetite for the red metal.Copper for March delivery on the Comex division of the New York Mercantile Exchange plunged 6.0 cents, or 2.86%, to trade at $2.028 a pound as of 07:50 GMT, or 2:50AM ET. It earlier fell to $2.023, the lowest since November 24. On Wednesday, copper shed 0.7 cents, or 0.36%, following the release of disappointing Chinese service sector data.
- Oil prices extended this week’s rout to hit levels not seen in more than a decade on Thursday, as mounting concerns over China’s economic outlook added to the view that a global supply glut may stick around for longer than anticipated. China is the world’s second largest oil consumer after the U.S. and has been the engine of strengthening demand.Market sentiment was hit after the People’s Bank of China set its official yuan midpoint rate lower compared with Wednesday’s fix.
- Natural gas futures advanced 2 per cent in the domestic market on Thursday as investors and speculators booked fresh positions in the energy commodity as forecasts for colder than normal weather in the US East Coast in the coming week bolstered the demand outlook for gas-fired heating at offices and homes in the world’s biggest economy.
ECONOMY NEWS :
- The Indian government said on Thursday it agreed to accept demands set by the opposition Congress party to back a landmark tax reform, raising hopes a political standoff that blocked the measure throughout last year might be resolved. Parliamentary Affairs Minister Venkaiah Naidu also said the government was willing to bring forward the next parliament session to pass the proposed goods and services tax bill (GST) if Congress supports the measure.
- German manufacturing orders jumped in November as domestic demand supported. The economics ministry said Thursday that total orders for Germany’s important manufacturing sector, adjusted for seasonal swings and calendar effects, increased 1.5% on the month. Domestic orders soared by 2.6% in November from the preceding month. Foreign orders rose 0.6%, held back by weak Eurozone demand.
- The World Bank forecasts India to grow by a robust 7.8 percent this year and 7.9 percent in the next two years on the back of stronger domestic policy reforms, even as it cut its global economic growth forecast for 2016, citing weak growth among emerging markets. Developing economies are forecast to expand by 4.8 percent in 2016, less
than expected earlier but up from a post-crisis low of 4.3 percent in the year just ended. Growth is projected to
slow further in China, while Russia and Brazil are expected to remain in recession in 2016.
TRADING STRATEGY :
- BUY GOLD ABOVE 1100 TARGET 1105 1111 SL 1094
- SELL GOLD BELOW 1095 TARGET 1090 1084 SL 1101