INTERNATIONAL COMMODITY NEWS :
- Gold prices struggled in North American trade on Monday, touching a one-week low after the latest U.S.employment report bolstered expectations of faster economic growth and revived speculation that the Federal Reserve will raise interest rates this year.Gold for December delivery on the Comex division of the New York Mercantile Exchange fell to a session low of $1,335.30 a troy ounce, the weakest since July 29. It was last at $1,341.25 by 12:52GMT, or 8:52AM ET, down $3.15, or 0.23%.
- Oil prices rallied in European trade on Monday, as renewed hopes for an agreement among exporters to freeze output underpinned the market, although a persistent global oversupply kept gains in check.Several OPEC members want to revive the idea of setting new limits on oil production this fall in an effort to stabilize the market, according to people familiar with the matter.
- Silver futures fell during evening trade in the domestic market on Monday as investors and speculators exited positions in the precious metal tracking weakness overseas as a stronger dollar curbed the lure for silver as an alternative asset. Stronger greenback makes the shiny metal more expensive for those holding other currencies thus dimming demand.
ECONOMY NEWS :
- Bank of England policymaker Ian McCafferty said more quantitative easing was likely to be required if the U.K.’s economic decline worsens, the Times reported on Tuesday.”Bank rate can be cut further, closer to zero, and quantitative easing can be stepped up”, McCafferty wrote in an op-ed for the Times.
- Fannie Mae and Freddie Mac, two government-controlled housing finance agencies, would need a big cash injection to weather another financial meltdown, a government regulator said on Monday.Fannie and Freddie would need as much as $126 billion in taxpayer funds to come through a serious downturn, according to a ‘stress test’ from the Federal Housing Finance Agency.
- Atlante, the fund set up to rescue Italian banks, has already raised more than the 1.6 billion euros ($1.8 billion) it has pledged to buy part of the bad loan portfolio of troubled lender Banca Monte dei Paschi di Siena.Problem loans totaling around 360 billion euros after a three-year recession have become the focus of investor concerns over Italian banks, weighing heavily on their shares and proving a long-lasting headache for the government.
TRADING STRATEGY :
- BUY GOLD ABOVE 1334 TARGET 1339 1345 SL BELOW 1329
- SELL GOLD BELOW 1329 TARGET 1324 1318 SL ABOVE 1334