INTERNATIONAL COMMODITY NEWS :
- West Texas Intermediate oil futures fell again in Europe trade on Thursday, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose at a faster pace than expected last week. The U.S. Energy Information Administration will release its weekly report on oil supplies at 16:00GMT, or 11:00AM ET, Thursday.
- Gold futures edged lower in Europe trade on Thursday, after rising to a more than one-week high in the prior session, as market players looked ahead to upcoming U.S. economic data as well as the European Central Bank’s policy statement amid ongoing concerns over the oil rout.Investors kept an eye on U.S. data due later in the session to gauge if the world’s largest economy is strong enough to withstand further rate hikes in 2016.
- Copper futures rallied modestly during noon trade in the domestic market on Thursday as investors and speculators booked fresh positions in the industrial metal amidst a pickup in physical demand for copper in the domestic spot market. However worries that a worsening economic slowdown in China the world’s biggest metals consumer may curb the demand for the industrial metal trimmed gains in copper as China’s stock markets declined for a second straight day as traders seemed unsure over policymakers’ ability to manage an economic slowdown and tackle financial volatility.
ECONOMY NEWS :
- International Monetary Fund chief Christine Lagarde on Thursday said China’s structural reform will be a “massive undertaking”.Largarde’s comments were made at a session at the World Economic Forum in Davos, seen in a video feed monitored by Reuters.She added that she does not think China will actually complete the reform undertaking in line with the criteria attached to its entry into the IMF’s special drawing rights basket.
- The European Central Bank is likely to keep interest rates on hold when its policymakers meet on Thursday, even as a market crash, tumbling bank stocks and ebbing inflation set the stage for action later in the year. The meeting of the Governing Council comes shortly after it cut the deposit rate in December, increasing the charge on banks for parking money at the ECB, and expanded its purchase program to buy chiefly government bonds.
- China and Egypt will sign 21 deals on Thursday including a $1 billion financing agreement with Egypt’s central bank and a $700 million loan deal with the state-owned National Bank of Egypt.Ministers from the two countries began signing the agreements, many of them memorandums of understanding, at a meeting in Cairo during a visit by Chinese President Xi Jinping.The deals span a raft of infrastructure investments including an agreement between Egypt’s Housing Ministry and a Chinese developer to work on the first phase of a new Egyptian administrative capital.
TRADING STRATEGY :
- BUY GOLD ABOVE 1103 TARGET 1108 1113 SL 1097
- SELL GOLD BELOW 1097 TARGET 1092 1086 SL 1103