INTERNATIONAL COMMODITY NEWS :
- Oil prices fell on Thursday after U.S. inventory data showing stockpiles at another record high last week.U.S. crude stockpiles rose 3.5 million barrels to reach an all-time high above 507 million barrels.Oil prices have fallen almost 70% since June 2014 with global production outstripping demand.
- Natural Gas futures extended a slump during noon trade in the domestic market on Thursday as investors and speculators remained jittery ahead of the weekly US storage data which may show a below average drop in US gas supplies signaling weak demand for the heating fuel in the world’s biggest gas consuming nation.US gas supplies probably fell by 125 billion cubic feet in the week ended February 19 2016 compared to 158 billion cubic feet in the prior week 220 billion cubic feet in the same week a year ago and a five-year average draw of around 137 billion cubic feet.
- Gold futures struggled for direction in Europe trade on Thursday, swinging between small gains and losses as investors continued to monitor movements in oil and global equity markets.Gold for April delivery on the Comex division of the New York Mercantile Exchange dipped $1.60, or 0.13%, to trade at $1,237.50 a troy ounce by 09:50GMT, or 4:50AM ET.’
ECONOMY NEWS :
- Interbank money market rates in China rose noticeably Thursday as small banks rushed to borrow money to meet liquidity demand from a hike in their required reserve ratio with the People’s Bank of China.Last week, the PBOC said that under its dynamic RRR system, banks would see on Thursday what is now a standard yearly adjustment to “normal” levels.
- Prices for mansions in Houston’s swankiest neighbourhood have tumbled in lock step with crude prices. The Houston Opera has offered free season tickets to patrons who lost their jobs in the oil bust. A fancy restaurant offers cut-price dinners.Twenty months into the worst oil price crash since the 1980s, well-heeled residents of the world’s oil capital are among the hardest hit largely because tanking energy firm shares make up much of oil and gas executives’ compensation.
- A key measure of the market’s longer-term euro zone inflation expectations fell to a record low on Thursday in response to this week’s drop in oil prices.The five-year, five-year euro zone breakeven forward , which is closely watched by the European Central Bank and measures where markets expect inflation forecasts for 2026 to be at the start of 2021, hit a record low below 1.40 percent.
TRADING STRATEGY :
- BUY GOLD ABOVE 1240 TARGET 12601290 SL 1210
- SELL GOLD BELOW 1227 TAGRET 1207 1177 SL 1157