INTERNATIONAL COMMODITY NEWS :
- The price of Copper in the commodity market rose during noon trade as the metal is expected to be in shortage at the year-end as cooling investments mean no major mines are built this year. Copper is also considered to be a precious metal these days. Unlike the last few surplus years Copper is predicted to be below the inventory level which was supposed to be in accordance with the previous years.
- Crude oil prices rose by 2.62 per cent on Friday on growing supply as investors look ahead to US rig count data from Baker Hughes and as prices were lifted by firm economic indicators from the United States and Germany which could support fuel demand.
- Gold prices dropped on Friday on account of profit booking by traders as prices had earlier surged on expectations that any rate hikes by the Fed will be gradual based on comments from Federal Reserve Board Chair Janet Yellen. Prices had surged ahead of a public appearance by Federal Reserve chair Janet Yellen after the close of trading as investors digested dovish indications from the Fed’s March minutes that the US central bank will remain cautious with the timing of its next interest rate hike.
ECONOMY NEWS :
- India’s power reforms are likely to put pressure on state governments’ budgets, potentially forcing them to cut spending needed to support economic growth, the Reserve Bank of India said in a report on Thursday. States could find themselves deviating from the path of fiscal consolidation as they take on an additional interest burden from debt tied to state utilities.
- China’s securities regulator said on Friday it will revise risk-management rules for the brokerage industry, which now faces increasing risks in a more complex environment.The China Securities Regulatory Commission (CSRC) said on its official microblog it plans to change the way to calculate brokerages’ net capital and risk reserves, and improve supervision of leverage and liquidity.
- The EU and IMF met in Brussels on Friday to agree on how to coax Greece into more economic reforms linked to its bailout and unlock more funds, with one EU official saying they hoped for a deal by Sunday. Mission chiefs of Greece’s European Union and International Monetary Fund lenders left Athens for consultations in Brussels, adjourning their bailout review for one day, a Greek government official said, but the European Commission stressed these were not emergency talks and said things were still going well.
TRADING STRATEGY :
- BUY GOLD ABOVE 1241 TGT 1250 1259 SL BELOW 1233
- SELL GOLD BELOW 1230 TGT 1222 1216 SL ABOVE 1240