INTERNATIONAL COMMODITY NEWS :
- Gold prices rose by 0.82 per cent on Tuesday as investors await clearer signals on interest rates this week. Investors in Asia await the release of China’s monthly Caixin Services PMI index in March for further indications on the health of the struggling manufacturing sector in the world’s second-largest economy.
- Crude oil prices fell by 1.38 per cent on Tuesday as a bearish drumbeat of oversupply weighs on sentiment. Traders responded to a bearish note from BNP Paribas on the increased likelihood that oil could retest yearly lows amid signals of mounting stockpiles worldwide. At the MCX crude oil futures for April 2016 contract were trading at Rs. 2367 per barrel down by 1.38 per cent after opening at Rs. 2380 against the previous closing price of Rs. 2400.
- Natural Gas futures jumped by more than 3 per cent in the domestic market on Monday as investors and speculators booked fresh positions in the energy commodity tracking a bullish trend internationally where prices rose to an eight-week high on hopes that unseasonably cold weather in parts of the US may bolster demand for the heating fuel and ease a supply glut.
ECONOMY NEWS :
- Reserve Bank of India Governor Raghuram Rajan said on Tuesday the focus should be on how to ensure banks bring down their lending rates, rather than on debating how many rate cuts the central bank should be delivering.”It’s important not to fixate with the 25 basis point or 50 basis point (rate cut) or whatever number one thought was possible, but to focus on the process by which lower rates are being transmitted into the market which should be extremely helpful,” Rajan told analysts during a teleconference.
- Australia’s student housing market is shaping up to be the next big thing as an influx of foreign scholars entices investors into a neglected sector, reinvigorating a home building boom that is providing vital support to the wider economy.An English-speaking country at the doorstep of Asia and offering an enviable quality of life, Australia now sits with the United States and United Kingdom as a top destination for foreign students.
- Germany has failed to take advantage of cheap borrowing costs to boost investment that is essential to longer-term economic growth, the Organisation for Economic Cooperation and Development (OECD) said on Tuesday. In an economic survey, the Paris-based OECD also said weakness among Germany’s trading partners could weigh on consumer confidence, which is crucial to supporting the private consumption on which the economy is increasingly reliant.
TRADING STRATEGY :
- BUY GOLD ABOVE 1235 TARGET 1240 1246 SL 1229
- SELL GOLD BELOW 1228 TARGET 1223 1216 SL 1234