INTERNATIONAL COMMODITY NEWS :
• Gold and copper prices were mostly steady on Friday in Asia after Japan reported solid industrial output, but downbeat data on jobs, inflation and retail sales National core CPI in Japan rose 2.2%, below the 2.3% year-on-year for January expected. The unemployment rate in January ticked up to 3.6%, compared to an expected steady rate of 3.4%. Household spending fell 5.1% in January year-on-year. Industrial production month-on-month jumped 4.0%, well above an expected gain of 2.7% and retail sales fell 2.0%, compared to a forecast of down 1.3% year-on-year.
• Crude Oil prices fell sharply on Thursday erasing all of February’s gains as the price approaches a 52-week low. On the New York Mercantile Exchange, crude oil for April delivery fell 5.57% or 2.84 to $48.15 a barrel in afternoon trading. With one trading day left in the month of February, the price of WTI Crude nears a 52-week low of $44.37.The precipitous drop in crude on Thursday came one day after the Energy Information Administration (EIA) said in its weekly report that U.S. crude oil inventories rose by 8.4 million barrels last week. The increase more than doubled its forecasts of a 4.0 million barrel weekly spike. In Cushing, Oklahoma, storage increased from 46.3 million barrels to 48.7 million — the highest level in over a year.
• Natural gas futures plunged more than 4% on Thursday, after data showed that U.S. natural gas supplies fell less than expected last week, underlining concerns over weak demand. On the New York Mercantile Exchange, natural gas for delivery in April tumbled 13.0 cents, or 4.54%, to trade at $2.732 per million British thermal units during U.S. morning hours. Prices were at around $2.833 prior to the release of the supply data. Futures were likely to find support at $2.713 per million British thermal units, the low from February 17, and resistance at $2.948, the high from February 25. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended February 20 fell by 219 billion cubic feet, compared to expectations for a decline of 241 billion.
• Gold closed higher for the second consecutive day amid the release of mixed U.S. economic data and revamped metal trading in Asia. On the Comex division of the New York Mercantile Exchange, gold futures for April delivery jumped 7.60 points, or 0.63% to $1,209.10 a troy ounce. Gold reached a high of $1,219.90.Gold prices dipped earlier this week as Chinese markets remained closed for Lunar New Year celebrations. Gold rose steadily on Thursday following reports of lowering U.S. inflation. The Consumer Price Index (CPI) fell 0.7% in January, slightly below estimates of a 0.6% decline. The drop in inflation was the largest decline since December, 2008. The CPI, which slipped 0.3 percent in December, experienced a decline for the third straight month.
TRADING STRATEGY :
- BUY GOLD ABOVE 1211.75 TARGET 1216.75 1222.75 SL 1205.75
- SELL GOLD BELOW 1205.5 TARGET 1200.5 1194.5 SL 1211.5