INTERNATIONAL COMMODITY NEWS :
- Gold prices struggled for direction in quiet trade on Monday, as market players continued to monitor movements in the U.S. dollar and global stock markets.The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.1% to 99.08.Meanwhile, global equity markets were lower as oil prices fell below the $28-level to hit a fresh 13-year low, adding to fears over the outlook for global growth.
- Copper prices bounced back from a new seven-year low in Europe trade on Monday, but gains remained limited amid ongoing concerns over the health of the global economy. The red metal is sensitive to the economic growth outlook because of its widespread uses across industries.
- Brent oil futures fell below the $28-level to hit a fresh 13-year low on Monday, as international sanctions against Iran’s nuclear program were lifted over the weekend, opening the door to a wave of new oil and adding to concerns that a global glut will linger.Analysts say the country could quickly ramp up exports by around 500,000 barrels.
ECONOMY NEWS :
- The Bank of Japan expressed disappointment at how slowly companies are raising pay despite a tightening job market, suggesting its readiness to expand stimulus if the recent market turmoil further delays wage hikes. But BOJ Governor Haruhiko Kuroda maintained his upbeat view on the economy and offered no clear signs that additional stimulus may be forthcoming this month.
- Politicians and business leaders gathering in the Swiss Alps this week face an increasingly divided world, with the poor falling further behind the super-rich and political fissures in the United States, Europe and the Middle East running deeper than at any time in decades.Just 62 people, 53 of them men, own as much wealth as the poorest half of the entire world population and the richest 1 percent own more than the other 99 percent put together, anti-poverty charity Oxfam said on Monday.
- India’s exports declined 14.75 percent in December from a year ago to $22.29 billion, data released by the Ministry of Commerce and Industry showed Monday. Exports decreased for a 13th consecutive month in December. At the same time, imports dropped 3.88 percent to $33.96 billion. Consequently, the trade deficit widened unexpectedly to $11.66 billion from $9.8 billion in November. During April to December, exports plunged 18.06 percent and imports by 15.87 percent, taking the trade shortfall to $99.2 billion.
TRADING STRATEGY :
- BUY GOLD ABOVE 1095 TARGET 1100 1106 SL 1089
- SELL GOLD BELOW 1085 TARGET 1080 1074 SL 1091