INTERNATIONAL COMMODITY NEWS :
- Gold prices pushed higher for the second straight session on Thursday, as market players sought refuge amid steep declines in global stock markets.Global stock markets plunged as Brent oil prices fell to fresh 12-year lows, adding to fears over the outlook for global growth.Gold for February delivery on the Comex division of the New York Mercantile Exchange tacked on $5.10, or 0.47%, to trade at $1,092.20 a troy ounce by 09:55GMT, or 4:55AM ET.
- Brent oil futures fell further below the $30-level to hit a fresh 12-year low on Thursday, amid ongoing concerns over a global supply glut.Oversupply issue will be exacerbated further once Iran returns to the global oil market after western-imposed sanctions are lifted. Analysts say the country could quickly ramp up production by around 500,000 barrels, adding to the glut of oil that has sent prices tumbling.
- Natural gas futures ended lower in the domestic market on Wednesday as market participants turned cautious ahead of the weekly US storage numbers due on Thursday which may signal the strength of the demand for the fuel in the world’s biggest fuel consuming nation.The EIA may show a dip of 170 billion cubic feet in US gas supplies in the week ended January 8 2016 after a 113 billion cubic feet withdrawal in the prior week and a five-year average decline of 178 billion cubic feet.
ECONOMY NEWS :
- India Wholesale price inflation (WPI) measured a rate of -0.73% in December–retreating from -1.99% recorded in the previous month but still remaining in the negative zone for 14 months in a row, showed the official data released on Thursday. Food inflation in the wholesale price index (WPI) edged up for a fourth straight month to touch 8.17% in December, compared with 5.20% in November.
- The Reserve Bank of India likely sold dollars through state-owned banks to stem the rupee’s fall after it plunged to a month low on Thursday, three FX traders told Reuters.At 0357 GMT, the Indian rupee INR=D2 was trading at 67.0950/1050 to the dollar, a level last seen on Dec. 15.The rupee was down tracking dollar strength against most Asian currencies after a rout in oil and commodity prices hit risk sentiment and heightened fears about the global economy. EMRG/FRX
- The Bank of England looks likely to signal another delay in raising interest rates on Thursday thanks to a renewed oil price slump,sputtering wage growth and the approach of an unsettling vote on Britain’s European Unionmembership. Amid signs of a weakening in Britain’s economic recovery and doubts about how hard China’s slowdown will hit the world economy, some economists are pushing their forecasts for a first BoE rate hike to as far back as November.
TRADING STRATEGY :
- BUY GOLD ABOVE 1095 TARGET 1100 1106 SL 1089
- SELL GOLD BELOW 1089 TARGET 1084 1078 SL 1095