INTERNATIONAL COMMODITY NEWS :
- Natural gas futures plummeted by nearly 2 per cent in the domestic market on Friday crashing to the lowest level in seven weeks overseas as investors and speculators shunned the energy commodity as forecasts for above normal temperatures later in February across the US threatened to curb the demand for the heating fuel in the world’s biggest gas consuming nation.
- Oil prices gave back some of the previous session’s strong gains on Monday, with the U.S. benchmark falling back below the $29-level amid doubts over the likelihood of a collective OPEC cut happening anytime soon. Global oil prices surged more than 12% on Friday after a report once again suggested OPEC might finally agree to cut production to reduce the world glut, though traders remained skeptical over the potential for an agreement.
- Gold futures fell sharply in Europe trade on Monday, as the metal’s safe-haven appeal was dampened amid a recovery in global equity markets.Gold for April delivery on the Comex division of the New York Mercantile Exchange fell to an intraday low of $1,212.50 a troy ounce before paring some losses to trade at $1,213.30 by 08:00GMT, or 3:00AM ET, down $26.10, or 2.11%.Gold soared to a one-year high of $1,263.90 late last week, boosted by a flight to safety.
ECONOMY NEWS :
- Australia will move to a new process by the end of this year for setting its credit market reference rate, even as the corporate regulator reportedly prepares to launch its first civil action for attempted rate rigging. The changes, contained in a discussion paper from the Council of Financial Regulators (CFR), are intended to minimise the risk of manipulation facing Australia’s BBSW bank bill swap rate, which sets the price of money market funds.
- Japan is poised to push for greater cooperation from its G7 partners to soothe market jitters but may struggle to produce measures that could meaningfully restore global market confidence, government sources say. As economic leaders from G20 nations prepare to meet in Shanghai next week, there is increasing market speculation that the world’s largest economies, notably G7 countries, may produce a coordinated policy response to global market ructions and slowing growth. This could include currency intervention.
- A delegation from the International Monetary Fund will visit Tunisia on Thursday to begin talks on a new credit programme likely to be worth at least $1.7 billion (£1.17 billion), a Tunisian official said.Tunisia is seeking to revive an economy that has struggled since the 2011 uprising that sparked the Arab Spring revolutions across North Africa, with deadly attacks last year by Islamist militants hitting the tourism industry on which it relies for jobs and revenue.
TRADING STRATEGY :
- BUY GOLD ABOVE 1215 TARGET 1220 126 SL 1221
- SELL GOLD BELOW 1205 TAGRET 1200 1194 SL 1211