INTERNATIONAL COMMODITY NEWS
- Gold prices slipped lower on Friday, as markets turned their attention to the upcoming report on U.S. nonfarm payrolls for further hints on whether or not the Federal Reserve will raise interest rates later this year. On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were down 0.24% at $1,314.05, just off the four-day high of 1,319.45 hit overnight. The December contract ended Thursday’s session 0.43% higher at $1,317.10 an ounce. Futures were likely to find support at $1,301.50, Thursday’s low and a more than two-month low and resistance at $1,340.50, the high from August 26.Gold prices strengthed briefly thanks to a weaker U.S. dollar after the Institute for Supply Management said on Thursday that its manufacturing activity index dropped to 49.4 last month from July’s reading of 52.6. It was the worst reading since January and missed expectations for a slight drop to 52.0. The report came shortly after data showed that U.S. initial jobless claims increased by 2,000 to 263,000 last week, compared to expectations for a 4,000 rise to 265,000.
- U.S. oil futures bounced off three-week lows on Friday, helped by fresh hopes of a production freeze, although gains were limited by investors’ cautious stance before a U.S. employment report due later in the day. U.S. Crude futures for October delivery were up 1.07% at $43.64 a barrel, off Thursday’s three-week lows of 48.00. On the ICE Futures Exchange in London, the November Brent contract rallied 1.21% to $46.00 a barrel, easing off the previous session’s three-week through of 45.32. Oil prices strengthened after Russian President Vladimir Putin said in an interview with Bloomberg that an agreement between oil exporters to freeze output would be the right decision to support the market. OPEC members are set to discuss a potential production cap at a meeting in Algeria later in September. Crude also benefited from a brief decline in the U.S. dollar after the Institute for Supply Management said on Thursday that its manufacturing activity index dropped to 49.4 last month from July’s reading of 52.6. It was the worst reading since January and missed expectations for a slight drop to 52.0.
- Natural gas futures were trading on a positive note during noon trade in the domestic market on Friday as investors and speculators shrugged off a bigger-than-expected rise in US gas supplies last week. The EIA said that US natural gas storage rose 51 billion cubic feet to 3.401 trillion cubic feet in the week ended August 26 against an expected rise of 41 billion cubic feet addition of 11 billion cubic feet in the prior week 96 billion cubic feet a year earlier and a five-year average of 67 billion cubic feet.
TRADING STRATEGY :
- BUY GOLD ABOVE 1317 TARGET 1322 1328 SL BELOW 1312.
- SELL GOLD BELOW 1308 TARGET 1303 1297 SL ABOVE 1313.
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