INTERNATIONAL COMMODITY NEWS :
- The price of copper gained by 0.90 per cent on Tuesday afternoon market pertaining to strong demand in domestic market. A firm trend in the base market at the London Metal Exchange backed by a rise in crude oil price and increase in demand in China market has influenced copper price in future trades.
- Gold prices were trading flat on Tuesday as investors await more clarity on the US interest rate outlook. Prices rose as expectations that the Federal Reserve will keep interest rates on hold for some time to come underpinned investor demand for the precious metal.
- Crude oil prices rose by 0.41 per cent on Tuesday ahead of a meeting of oil producers in Doha next Sunday aimed at freezing current output levels. The market received a small boost ahead of the settlement as a US government forecast released said US shale oil production is expected to fall for a seventh month in a row in May.
ECONOMY NEWS :
- Economists say that China grew at its slowest pace since the financial crisis in the first quarter, highlighting continued downward pressure on the world’s second largest economy despite some tentative recent signs of stabilization. Growth in first quarter gross domestic product (GDP) likely slowed to 6.7 percent from the same period last year, down from 6.8 percent in the fourth quarter of 2015, according to a Reuters poll of 64 economists.
- Germany’s economic expansion is set to continue, but at a slightly slower pace as the improvement on the domestic front is being offset by the subdued external environment, the Economy Ministry stated in a latest update. In its monthly report for April, the ministry said the economic growth gained momentum at the start of the year. Though domestic factors supporting the economic expansion have improved, the external environment remains subdued. Export prospects are also likely to remain subdued.
- Greece will meet its bailout obligations to the letter and expects its interlocutors to do the same, spokes woman Olga Gerovasili said on Tuesday after bailout talks were adjourned due to differences over fiscal targets and reforms.”The negotiation with the lenders should have been concluded long ago, since the Greek government has submitted comprehensive proposals which meet its targets,” Gerovasili said noting that the IMF stance was not helping conclude a deal in time.
TRADING STRATEGY :
- BUY GOLD ABOVE 1265 TGT 1270 1276 SL BELOW 1259
- SELL GOLD BELOW 1257 TGT 1252 1246 SL ABOVE 1262