INTERNATIONAL COMMODITY NEWS :
- Natural Gas futures slid during noon trade in the domestic market on Tuesday as a stellar rally in the previous session when prices surged by more than 4.5 per cent as forecasts for cold weather across parts of the US over the next two weeks bolstered the demand outlook for the heating fuel paved way for profit booking in the energy commodity by investors and speculators at existing levels.
- Gold prices fell by 0.19 per cent on Tuesday on profit taking as investors looked ahead to the views on US interest rates this week.Investors await an appearance by Federal Reserve chair Janet Yellen before the House Financial Services Committee on Wednesday for further indications on the pace of tightening over the next several months.
- Crude oil prices fell by 0.05 per cent on Tuesday after a meeting between oil ministers from Saudi Arabia and Venezuela over the weekend reportedly accomplished little headway toward reaching an agreement that could curtail near-record high production by OPEC.At the MCX crude oil futures for February 2016 contract were trading at Rs. 2049 per barrel down by 0.05 per cent after opening at Rs. 2057 against the previous closing price of Rs. 2048. It touched the intra-day low of Rs. 2045 till the trading.
ECONOMY NEWS :
- U.S. President Barack Obama unveils his final White House budget on Tuesday with a blueprint for fiscal year 2017 that will lay out his spending proposals for priorities from fighting Islamic State to providing for the poor. The budget for the fiscal year beginning on Oct. 1 is largely a political document and is unlikely to be passed by the Republican-controlled Congress.But it gives the Democratic president, who leaves office in January, a chance to make a last pitch for funding on issues such as education, criminal justice reform and job creation.
- The Australian government said on Wednesday it wants to digitise A$42 billion ($30 billion) a year of health payments to keep up with “tap and go” technology, prompting critics to warn against any attempt to sell off the four-decade-old system by stealth.Health Minister Sussan Ley said in a statement that the government was “investigating ways to digitise its transaction technology for payments to a more consumer-friendly and faster format”.
- Japanese Finance Minister Taro Aso warned on Tuesday against a recent rise in the yen, describing the moves as “rough”, a sign that policymakers are concerned the currency’s gains may offset the positive effects from “Abenomics” stimulus policy. Japan’s top currency diplomat Masatsugu Asakawa echoed the minister’s warning, saying that he would closely monitor market moves.Despite verbal warning shots, the dollar fell below 115 yen on Tuesday morning, a low not seen since November 2014.
TRADING STRATEGY :
- BUY GOLD ABOVE 1190TARGET 1195 1201 SL 1184
- SELL GOLD BELOW 1163 TAGRET 1158 1152 SL 1169