INTERNATIONAL COMMODITY NEWS :
- West Texas Intermediate oil futures tumbled below the $27-level to re-approach the lowest level in almost 13 years in Europe trade on Thursday, as record crude inventories at the Cushing delivery hub underlined concerns over a supply glut. Crude oil for delivery in March on the New York Mercantile Exchange fell to an intraday low of $26.56 a barrel, before recovering slightly to trade at $26.88 by 08:55GMT, or 3:55AM ET, down 56 cents, or 2.02%. A day earlier, prices declined 49 cents, or 1.75%.
- Gold futures jumped to the highest level since May in Europe trade on Thursday, amid growing skepticism over the Federal Reserve’s ability to raise interest rates as much as it would like this year.Gold for April delivery on the Comex division of the New York Mercantile Exchange rose to an intraday peak of $1,215.30 a troy ounce, a level not seen in almost nine months, before falling back to trade at $1,207.80 by 08:00GMT, or 3:00AM ET, up $13.30, or 1.11%. A day earlier, gold shed $4.00, or 0.33%.
- Natural Gas futures slumped by 4 per cent in the domestic market on Wednesday as investors and speculators exited positions in the energy commodity tracking a weak trend in the overseas market as forecasts calling for warmer than average temperatures in the US later in February threatened to curb the demand for the heating fuel in the world’s biggest gas consuming nation.
ECONOMY NEWS :
- India will link the interest paid to millions of small savers in a $137-billion federal deposit scheme to market rates that will be revised every quarter, a top finance ministry official said on Thursday.Cutting the small savings rate could save the government an estimated $700 million a year. But the move is likely to irk small savers and could be unpopular politically, particularly in rural areas where few banks have branches.
- India’s economic growth is robust despite turmoil on global financial markets, a top finance ministry official said on Thursday, reiterating the official forecast that the economy would grow by 7.6 percent in the year to March.”The world is in turmoil,” Economic Affairs Secretary Shaktikanta Das told a news briefing on the economy that will set the stage for the annual budget on Feb. 29.Das described growth by Asia’s third-largest economy as “robust” and said it was driven by manufacturing.
- Australian Prime Minister Malcolm Turnbull will likely inherit a hard-right, climate change sceptic for his deputy after the retirement of his current No.2 on Thursday, an appointment that could block any revamp of an emissions trading scheme. Agriculture Minister Barnaby Joyce, an outspoken lobbyist for the nation’s farmers and for tougher controls on foreign investment, is the leading candidate for the job traditionally held by the coalition government’s minor partner, the Nationals.
TRADING STRATEGY :
- BUY GOLD ABOVE 1220 TARGET 1225 1231 SL 1214
- SELL GOLD BELOW 1215 TAGRET 1210 1204 SL 1221