INTERNATIONAL COMMODITY NEWS :
- Gold futures pushed higher in Europe trade on Wednesday, as retreating oil prices, a weaker dollar and losses in global equity markets underpinned demand for assets perceived as safer.Global stock markets plunged as oil prices fell to fresh 13-year lows, adding to fears over the outlook for global growth. Japan’s Nikkei 225 entered a bear market Wednesday, whileHong Kong stocks hit a three-and-a-half year low.
- West Texas Intermediate oil prices sank to a fresh 13-year low in Europe trade on Wednesday, as ongoing concerns over the strength of the global economy added to uncertainty about how quickly the global glut of crude is set to shrink.The International Monetary Fund cut its global growth forecasts for the third time in less than a year on Tuesday, citing a sharp slowdown in China , weak commodity prices and rising interest rates in the U.S.
- Crude oil prices closed lower in the domestic market on Tuesday as investors continued to digest Iran’s historic return to global energy markets and reports of record annual demand in China while oil prices remained at near 12-year lows. Investors continued to react to Saturday’s Implementation Day announcement after a report from the International Atomic Energy Agency (IAEA) found that the Persian Gulf state completed the steps necessary to restrict its nuclear testing program.
ECONOMY NEWS :
- Germany’s producer prices dropped 2.3 percent year-on-year in December, slower than the 2.5 percent decrease seen in November, Destatis reported Wednesday. But it was slightly faster than the expected rise of 2.2 percent. Producer prices have been falling since August 2013. Energy prices were 6.8 percent low compared with last December and prices of intermediate goods fell 2.2 percent. Month-on-month, producer prices slid 0.5 percent after easing 0.2 percent in November and 0.4 percent in October.
- Australia consumer confidence declined again in January, the latest survey from Westpac Bank showed on Wednesday as its index slipped 3.5 percent to a score of 97.3. That follows the 0.8 percent contraction in December to 100.8. Among the individual components of the survey, family finances tumbled 9.4 percent to a six- month low, while the time to purchase a major household item slipped 1.7 percent.
- The global unemployment rate will inch down to 5.7 percent in 2017 from 5.8 percent in 2014-16, helped by job creation in the U.S. and Europe, although a growing population means the total of number of unemployed people will rise, the International Labour Organization said a report.The ILO’s forecast for the unemployment rate to fall is more optimistic than it was a year ago, when the United Nations agency estimated it would remain at 5.9 percent from 2014 to 2017.
TRADING STRATEGY :
- BUY GOLD ABOVE 1095 TARGET 1100 1106 SL 1089
- SELL GOLD BELOW 1090 TARGET 1085 1079 SL 1096