INTERNATIONAL COMMODITY NEWS :
- Gold prices inched lower on Tuesday, as steep declines in other metal commodities, like copper, platinum and palladium, weighed. Gold for February delivery on the Comex division of the New York Mercantile Exchange shed $1.30, or 0.12%, to trade at $1,094.90 a troy ounce as of 09:45 GMT, or 4:45AM ET. A day earlier, prices dipped $1.70, or 0.15%.
- Crude oil fell 3 percent on Tuesday, heading toward $30 per barrel and levels not seen in over a decade, with analysts scrambling to cut their price forecasts and traders betting on further declines.Prices are down around 20 percent since the start of the year, dragged lower by soaring oversupply, China’s weakening economy and stock market turmoil, as well as the strong dollar, which makes it more expensive for countries using other currencies to buy oil.
- Copper prices fell to a new six-year low on Tuesday, as investors continued to cut holdings of the red metal amid persistent worries about future demand from top consumer China.Copper for March delivery on the Comex division of the New York Mercantile Exchange shed 1.7 cents, or 0.86%, to trade at $1.957 a pound by 08:00 GMT, or 3:00AM ET.
ECONOMY NEWS :
- China’s cabinet is taking a key first step towards tighter control of its financial regulatory apparatus, a source told Reuters, after repeated regulatory missteps have dented confidence as the world’s second-largest economy struggles. A source close to the leadership said the State Council has set up a working group to upgrade the cabinet’s financial department to bureau level to serve as an interim manager of the process until a “super regulator” structure can be put into place.
- Austria will take tougher action at its borders to turn away “economic migrants” in order to reduce overall immigration, Chancellor Werner Faymann said, striking a harsher tone on asylum seekers.Hundreds of thousands of people fleeing conflict and poverty in the Middle East, Afghanistan and elsewhere have entered Austria, many en route to Germany, in the past year.
- Germany probably achieved a double-digit budget surplus last year, beating its forecast for a surplus of 6.1 billion euros (4.57 billion pound), two sources in Germany’s ruling coalition told Reuters on Tuesday. One source said the surplus would be in the double digits while a second source said it would probably be between 11 and 12 billion euros. The surplus is due to be made available for spending on refugees.
TRADING STRATEGY :
- BUY GOLD ABOVE 1095 TARGET 1100 1106 SL 1089
- SELL GOLD BELOW 1090 TARGET 1085 1079 SL 1096