INTERNATIONAL COMMODITY NEWS :
- Oil prices fell on Wednesday after industry data showing a huge build inU.S. crude stockpiles that were already at record highs.U.S. crude inventories jumped by 9.9 million barrels last week the American Petroleum Institute said after Tuesday’s settlement.That was well above a 3.6-million barrel increase expected by analysts.
- Gold futures were slightly lower in European trade on Wednesday, as investors looked ahead to key U.S. data later in the day to gauge if the world’s largest economy is strong enough to withstand further rate hikes this year. The U.S. was to release the ADP employment report for February at 13:15GMT, or 8:15AM ET, amid expectations for a gain of 190,000 jobs.
- Natural Gas futures sank more than 2 per cent during noon trade in the domestic market on Wednesday as investors and speculators shunned the energy commodity as forecasts for above normal temperatures threatened to cut demand for the heating fuel in the world’s biggest fuel consuming nation.Updated weather forecasting models called for the arrival of mild spring weather across parts of the US in the next ten days which may curb demand for gas-fired heating at offices and homes.
ECONOMY NEWS :
- Parts of Australia’s Great Barrier Reef face permanent destruction if the current El Nino, one of the strongest in two decades, does not ease this month, scientists said on Wednesday.The El Nino is a result of a warming of the ocean in the western Pacific — ideal conditions for coral bleaching, where coral expels living algae, causing it to calcify. Coral can only survive within a narrow band of ocean temperature.
- Euro zone banks have dealt well with rock bottom interest rates and their biggest problems are not caused by loose monetary policies, a top European Central Bank official said on Wednesday, paving the way for more policy easing next week.Bank earnings may be weak, constraining their ability to generate capital, but many have overcome negative central bank rates and the ECB’s commitment to price stability has actually supported banking profitability, Executive Board member Benoit Coeure said.
- The Group of 20’s agreement that monetary policy alone cannot lead to balanced growth does not place any restrictions on the Bank of Japan’s ability to expand its negative interest rate policy, an adviser to Japan’s prime minister said on Wednesday.The BOJ should calmly study the impact of its negative rate policy, which came into effect last month, when deciding its next move, Masahiko Shibayama told Reuters in an interview.
TRADING STRATEGY :
- BUY GOLD ABOVE 1235 TARGET 1240 1246 SL 1229
- SELL GOLD BELOW 1222 TARGET 1217 1211 SL 1228