INTERNATIONAL COMMODITY NEWS :
Gold prices were higher on Monday, but held around the $1,200 threshold as the sustained strength of the dollar continued to weigh on the precious metal.On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.34% to $1,200.10.The February contract ended Friday’s session 0.10% higher at $1,196.00 an ounce.The dollar remained supported after the Federal Reserve signaled last week that it was on track to raise interest rates next year but said it was taking a patient stance.
TRADING STRATEGY :
BUY GOLD ABOVE 1179.75 TARGET 1184.75 1190.75 SL 1173.75
SELL GOLD BELOW 1175 TARGET 1170 1164 SL 1181
MARKET UPDATES :
- Oil prices rose in Asia on Monday, extending a sharp rebound at the end of last week, with analysts predicting the sector has bottomed out after plunging almost 50 per cent since June.US benchmark West Texas Intermediate (WTI) for February delivery gained 79 cents to US$57.92 while Brent crude for February added 91 cents to US$62.29 in afternoon trade.”We do not expect WTI and Brent to test new lows this week,” said Daniel Ang, investment analyst at Phillip Futures in Singapore.
- Olam International – Positives priced in-:4QFY6/14 earnings were in line with market expectation. Revenue dropped 11.4% YoY on lower sales volume, a change in its business mix and lower commodity prices. EBITDA, after adjusting for biological gains, was flat YoY. Excluding exceptionals, operational profit climbed by 1.5% YoY. Full-year performance benefited from upstream nut plantations, favourable coffee trading conditions, flour milling, packaged foods and sugar refining, attenuated by less favourable trading conditions for rice, grains and cotton. FY6/14 EBITDA grew 8%, excluding biological gains.
- Silverlake Axis (SAL) has formed a new 51:49 company, Silverlake HGH, with Andrew Holliday, MD of Finzsoft Solutions, a New Zealand-based financial technology company. Silverlake HGH will make a full takeover ofFinzsoft (FIN NZ, Not Rated) at NZD3.00 a share or 48.1% discount to Finzsoft’s last closing price of NZD5.78. Mr Holliday has committed to accepting the offer for his 65.9% stake in Finzsoft. In its press release, SAL highlights potentially strong synergies and the natural alignment of its target customers in the Asia Pacific.
- Wilmar International – Better soybean crushing in FY15-:oybean-crushing margins still biggest swing factor. December’s weakness to be made up by Oct/Nov’s strength, supporting decent 4Q margins. Less speculative trading to benefit real soybean crushers like Wilmar, long term.
The dollar moved higher against the Canadian dollar and Norwegian krone as West Texas Intermediate crude futures gave up early Monday gains.
The dollar USDCAD, -0.12% rose to 1.165 Canadian dollars, its highest level since last Wednesday. The buck traded around 1.16 loonies Friday. The move came as West Texas Intermediate crude CLG5, +1.50% futures for February delivery lost 1.7% to $56.12.
The dollar USDNOK, -0.07% rose to 7.42 krone, its highest level since last Wednesday. It traded at 7.35 on Friday.
The ruble USDRUB, -0.30% continued its recovery against the dollar, rising to 55.84 per dollar, compared with 59.46 late on Friday, although it is still down more than 40% against the dollar this year.
The dollar USDJPY, +0.08% rose to 120 yen, its highest level in more than two weeks, benefiting from the Federal Reserve’s signal that it will raise interest rates in 2015. It traded at ¥119.52 Friday.
After trading higher against the dollar for most of the North American trading day, the euro traded flat at $1.222 EURUSD, +0.02%
The ICE U.S. Dollar Index DXY, -0.08% , a measure of the greenback’s strength against a trade-weighted basket of six currencies, was up 0.17% to 89.7490.
