INTERNATIONAL COMMODITY NEWS :
- Gold futures struggled for direction in subdued trade on Tuesday, as expectations for a Federal Reserve rate hike later this year weighed.Gold for December delivery on the Comex division of the New York Mercantile Exchange inched up $1.40, or 0.12%, to trade at $1,134.20 a troy ounce during European morning hours.
- Copper futures re-approached a two-week low on Tuesday, as investors looked ahead to key Chinese manufacturing data later in the week for a fresh indication on the strength of the world’s second largest economy. A day earlier, copper fell to $2.362, the lowest level since September 8, before turning higher to end up 0.2 cents, or 0.1%, at $2.388.
- U.S. natural gas prices struggled near the lowest level in almost five months on Tuesday, as forecasts for warm weather across key consumption regions of the U.S. in the week ahead dampened demand expectations for the fuel. Natural gas for delivery in October on the New York Mercantile Exchange inched up 0.7 cents, or 0.29%, to trade at $2.580 per million British thermal units during U.S. morning hours.
ECONOMY NEWS :
- Upper middle-class shoppers spooked by a whipsawing stock market and shoppers waiting till the last minute for the best deals could result in the weakest U.S. holiday sales season for retailers since the recession, AlixPartners said. “A lot of the ingredients that drive retail revenue…aren’t there,” he said pointing to slow U.S. economic growth, low inflation and population growth.
- Greek Prime Minister Alexis Tsipras appointed two respected bailout negotiators to head his economic team on Tuesday, moving to assure wary European partners that the new government will not backtrack on its cash-for-reform deal.
- Bond fund giant Pacific Investment Management Co said on Tuesday the pace of Federal Reserve interest-rate increases is likely to be even more gradual than the firm expected in March and that the U.S. central bank may find it impossible to escape the effective lower bound of policy rates.
TRADING STRATEGY :
- BUY GOLD ABOVE 1126 TARGET 1131 1137 SL 1120
- SELL GOLD BELOW 1120 TARGET 1115 1109 SL 1126