INTERNATIONAL COMMODITY NEWS :
- Gold prices rose by 0.14 per cent on Monday as a weaker dollar raised the appeal of gold as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies thus increasing demand. At the MCX Gold futures for April 2016 contract is trading at Rs 28080 per 10 gram up by 0.14 per cent after opening at Rs 28080 against the previous closing price of Rs 28040. It touched the intra-day high of Rs 28123.
- Copper futures retreated during noon trade in the domestic market on Monday tracking a bearish global trend as robust US jobs data for March raised concerns that the US Federal Reserve may hike interest rates in the near-term while worries over the demand outlook from China the world’s biggest metals consuming nation remained.
- Crude oil prices fell by 1.83 per cent on Monday as the chances of Middle East producers agreeing to curb overproduction appeared to fade while stubbornly high US output and worries about Asia’s economic outlook also dragged on prices. At the MCX crude oil futures for April 2016 contract were trading at Rs. 2418 per barrel down by 1.83 per cent after opening at Rs. 2457 against the previous closing price of Rs. 2463.
ECONOMY NEWS :
- Foreign direct investment (FDI) in Myanmar in the fiscal year ending in March grew to nearly $9 billion, a government official said on Monday, after a rush of last-minute approvals before the handover of power to Aung San Suu Kyi’s administration.The figure, a record high, rose by about $1 billion compared with the previous fiscal year, fueled by investment in the energy, manufacturing and telecoms sectors, San Myint, an official at the Directorate of Investment and Company Administration, told Reuters.
- Standard and Poor’s (S&P) chief sovereign ratings officer Moritz Kraemer repeated his warning that if the U.K. decided to leave the European Union (EU), known as a Brexit, in the June 23 referendum, the country’s triple-A rating would be at risk.“Given the U.K.’s deep political, financial and trading ties in Europe, an exit would be much more fraught, and the risks, when it comes to its credit worthiness, are therefore considerably higher,” Kraemer explained in an opinion piece written for Politico.
- Greece’s bailout review must be concluded immediately, Greek Prime Minister Alexis Tsipras’ office said on Monday, as talks on the country’s fiscal progress resumed amid tension after a leaked transcript detailing IMF mooted tactics to get a deal.”The negotiation must be concluded immediately, without unrealistic demands for additional measures beyond those set out in the July bailout agreement,” Tsipras’ office said.
TRADING STRATEGY :
- BUY GOLD ABOVE 1218 TARGET 1223 1229 SL 1212
- SELL GOLD BELOW 1214 TARGET 1209 1203 SL 1220