INTERNATIONAL COMMODITY NEWS :
- Natural Gas futures ended lower in the domestic market on Friday even as a massive blizzard rocked the US East Coast bringing life to almost a standstill and raising hopes of a pickup in demand for the heating fuel in the world’s biggest economy.Cold temperatures tend to boost demand for gas-fired heating at offices and homes.
- Copper futures fell in the domestic market on Monday as investors and speculators exited positions in the industrial metal amidst worries that demand from top consumer China may weaken in the coming days ahead of the Lunar New Year holidays when factories and businesses remain shut for a week due to festivities.
- Oil prices fell 3 percent on Monday as Iraq announced record-high oil production feeding into a heavily over -supplied market, wiping out much of the gains made in one of the biggest-ever daily rallies last week. Brent crude (LCOc1), the global benchmark, was down 93 cents at $31.25 a barrel at 0955 GMT, losing 3 percent from its closing price on Friday, when Brent surged 10 percent.U.S. crude (CLc1) traded $1.02 lower at $31.17 a barrel.
ECONOMY NEWS :
- Indian Prime Minister Narendra Modi said on Monday an intergovernmental deal had been signed to buy 36 Rafale combat jets from France, adding that the two countries would work to sort out financial issues on the deal. Modi was speaking after hosting French President Francois Hollande for talks in New Delhi. Earlier, Hollande had said that commercial talks would have to be wrapped up to close the deal first announced when Modi visited France last spring.
- Federal Reserve officials are playing it cool for now, but roughly $2.5 trillion of stock market value wiped out in the past three weeks and a possible consumer pullback could throw the Fed off its course of gradual interest rate hikes. Policymakers continue to argue that the threat will pass, but the risk that the selloff will hit the main engine of U.S. economic growth – household spending – gets bigger the longer markets remain depressed.
- The leaders of seven of Australia’s eight states and territories have called for the country to become a republic, reigniting a thorny debate ahead of a national holiday on Tuesday.Australia is a constitutional monarchy, with Britain’s Queen Elizabeth as head of state. The role is largely ceremonial, but the monarch does have the power to dissolve parliament, as in 1975, when Queen Elizabeth sacked the government.
TRADING STRATEGY :
- BUY GOLD ABOVE 1110 TARGET 1120 1135 SL 1099
- SELL GOLD BELOW 1100 TARGET 1090 1075 SL 1112