INTERNATIONAL COMMODITY NEWS :
- Natural Gas futures plunged by more than 5 per cent in the domestic market on Thursday as investors and speculators shunned the energy commodity tracking a bearish trend in the overseas market as a smaller-than-expected storage withdrawal signaled weak demand for the heating fuel in the world’s biggest economy even amidst the peak winter season fueling concerns over high storage levels.
- Copper prices fell by 0.54 per cent on Friday after the number of people who filed for unemployment assistance in the US rose unexpectedly last week signaling weak labor market in US world’s largest economy which reduced the demand for the metal. The US Department of Labor said the number of individuals filing for initial jobless benefits in the week ending January 8 increased by 7000 to a seasonally adjusted 284000 from the previous week’s total of 277000.
- Gold surged on Friday enjoying its strongest one-day move in six weeks, as a batch of soft U.S. economic data and further signals of weakness in China sent investors scurrying toward the safe-haven asset.On the Comex division of the New York Mercantile Exchange, gold for February delivery traded in a broad range between $1,076.00 and $1,097.20 an ounce before settling at $1,090.00, up 15.80 or 1.47% on the session.
ECONOMY NEWS :
- The Federal Reserve was worried that leaks of its confidential discussions in 2010 exposed it to charges of insider trading and raised questions over its credibility, according to transcripts of meetings released on Friday.The transcripts showed that members of the Federal Open Market Committee discussed the implications of a 2010 Reuters story, which reported that an advisory firm headed by former Fed Governor Larry Meyer sent a note on Aug. 19, 2010 to clients with a breakdown of a policy-setting meeting held nine days earlier.
- Bank of England Governor Mark Carney is unlikely to make many predictions for the coming year when he delivers his first keynote speech of 2016 on Tuesday.Since taking over the central bank nearly three years ago, Carney has been wrong-footed on a number of occasions by the British economy’s twists and turns after the financial crisis.This may prompt him to tread carefully when he speaks at the University of London.
- India’s market regulator raised gross open position limit amount for bank stock brokers in USD/INR derivative contracts to $1 billion from $100 million, an official release said on Friday.The limit stands at 15 percent of the total open interest or $1 billion, or whichever is higher, stated the Securities and Exchange Board of India (SEBI). “To maintain orderly conditions in the domestic foreign exchange market, and based on RBI’s recommendation, it has been decided to enhance the gross open position limits for bank stock brokers,” SEBI added.
TRADING STRATEGY :
- BUY GOLD ABOVE 1092 TARGET 1097 1103 SL 1086
- SELL GOLD BELOW 1084 TARGET 1079 1073 SL 1090