INTERNATIONAL COMMODITY NEWS :
- Gold prices were trading on a flat note on Wednesday in the midst of Fed Chair Janet Yellen’s signal of taking a cautious approach to raising US borrowing costs further dented the safe have appeal for the yellow metal. Yellen called for a slower pace of US interest rate tightening as she stressed that the rate of inflation in the US hasn’t yet proven to be sustainable in the wake of rising global risks that could slow growth in the American economy bolstering risk taking appetite.
- Copper futures fell during noon trade in the domestic market on Wednesday as investors and speculators exited positions in the industrial metal amid soft physical demand for copper in the domestic spot market. Further fears of weak demand from China the world’s biggest metals consumer after the country’s biggest cities including Shanghai and Shenzhen introduced property curbs weighed on the industrial metal.
- Crude oil prices rose by 0.39 per cent on Wednesday buoyed by a forecast for a less than expected build in crude oil stockpiles last week. The EIA is due to release official crude inventory data later on Wednesday. US crude stocks rose last week by 2.6 million barrels to 534.4 million barrels data from industry group the American Petroleum Institute showed on Tuesday.
ECONOMY NEWS :
- Chinese President Xi Jinping said on Wednesday his country’s economy was at a new normal and shifting to a slower pace of growth than in the past.”The world economy is in the current situation going through a time of deep modifications and the situation is complicated and unstable,” he told a Czech-Chinese business forum in Prague in comments broadcast through a Czech interpreter.
- Japanese lending rates hit a record low in February, the first month in which the central bank’s negative interest rate policy was applied, offering signs of hope for the ailing economy but underscoring the hit to commercial banks’ profit margins.The average lending rate for the balance of loans made by domestic banks stood at 1.098 percent in February, extending a record low for a fourth straight month, data released by the Bank of Japan showed on Wednesday.
- The Asian Development Bank slashed its economic growth forecast for developing Asia this year, citing global headwinds and a weaker outlook for China.Developing Asia will expand 5.7 percent this year and in 2017, the Manila-based lender said in its latest Asian Development Outlook released on Wednesday.In its December outlook report, the ADB had forecast 2016 growth for the region at 6.0 percent. region, which groups 45 countries in the Asia Pacific, grew 5.9 percent last year.
TRADING STRATEGY :
- BUY GOLD ABOVE 1244 TARGET 1249 1255 SL BELOW 1239
- SELL GOLD BELOW 1234 TARGET 1229 1223 SL ABOVE 1239