INTERNATIONAL COMMODITY NEWS :
- Crude oil prices gained further in Asia on Friday spurred by what appear to be a renewed effort by major producers to coordinate a cut in global output.On the New York Mercantile Exchange, WTI crude for March delivery soared 5.59% to $27.67 a barrel. Brent rose 5.56% to $31.73 a barrel.Minutes after the U.S. close, Dow Jones reported that OPEC members are preparing to cooperate on potential production cuts according to UAE’s energy minister.
- Copper futures rallied smartly during noon trade in the domestic market on Friday as investors and speculators booked fresh positions in the industrial metal amidst a pickup in physical demand for copper in the domestic spot market. Further upbeat Euro area Q4 GDP data signaled a resilient recovery in the 19-member economy lifting the demand outlook for the industrial metal.
- Natural Gas futures plunged by more than 1 per cent in the domestic market on Thursday as investors and speculators exited positions in the energy commodity as a smaller than expected US storage withdrawal last week signaled weak demand for the heating fuel in the world’s biggest gas consuming nation.The EIA said that US gas supplies fell 70 billion cubic feet to 2.864 trillion cubic feet in the week ended February 5 compared to expectations of an 82 billion cubic feet drop.
ECONOMY NEWS :
- The Federal Reserve’s carefully scripted decision to raise interest rates last December, and begin a return to “normal” policy, may now become a nightmare for the U.S. central bank if an economic downturn forces a return to unconventional methods. Fed chair Janet Yellen told lawmakers this week she was studying ways to “be prepared” in the event the current slide in world stock markets, concern about financial sector stress, and slowing economic growth all translate into a recession or another financial crisis.
- Greek police fired tear gas to disperse farmers protesting against pension reforms who threw stones at the Agriculture Ministry building in central Athens on Friday, ahead of a major demonstration expected later in the day.Farmers from all over Greece were heading to the capital to demonstrate their fury at the government’s plans to raise pension contributions and taxes.About 800 farmers from Crete, Greece’s biggest island, scuffled with police guarding the entrance to the ministry, throwing stones and breaking windows.
- Australia and New Zealand Banking Group ANZ.AX failed to see that some Asian nations would grow hostile to foreign banks after the 2008 financial crisis, which stymied its growth in the region, the bank’s chief executive said in a newspa per interview on Friday.ANZ, Australia’s fourth-largest bank, is the only one of the big four to have made a big push into Asia, with its previous chief executive, Mike Smith, having set a target to derive 25-30 percent of the group’s 2017 earnings from offshore.
TRADING STRATEGY :
- BUY GOLD ABOVE 1240 TARGET 1245 1251 SL 1234
- SELL GOLD BELOW 1235 TAGRET 1230 1224 SL 1241