INTERNATIONAL COMMODITY NEWS :
- Oil prices rose on Friday towards $45 a barrel, heading for a third straight week of gains as market sentiment turned more upbeat despite persistent oversupply.Traders said sentiment in the entire commodity complex had turned more confident despite the glut, with new cash being put into the market by investors, lifting prices.
- Gold prices slipped lower in European morning hours on Friday, as a stronger U.S. dollar and rising oil prices dampened demand for the safe-haven asset.On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 0.29% at $1,246.60. The June contract ended Thursday’s session 0.33% lower at $1,250.30 an ounce.
- Copper prices rose by 0.35 per cent on Friday after Germany’s manufacturing PMI rose more-than-expected last month signaling improving manufacturing activity in the region which raised the demand outlook for the metal. In a report Markit Economics said that German manufacturing PMI rose to a seasonally adjusted 51.9 from 50.7 in the preceding month.
ECONOMY NEWS :
- The European Union should protect its steel industry which is loosing its competitive edge in the face of cheaper Chinese products, German Economy Minister Sigmar Gabriel said on Friday.Half of Germany’s steel workers poured onto the country’s streets last week to protest against the dumping of Chinese steel, EU climate regulations and industry consolidation they fear will cost them their jobs. market competition is not a one-way street.
- Unlike his parents who rented their whole life, Berlin resident Sebastian lives in his own apartment and is considering buying a second property in the German capital as an investment to top up his pension one day.For decades a nation largely of tenants and prudent savers, growing numbers of Germans are buying property, not just to own their homes but also in search of investment returns they can no longer earn on their bank savings.
- Australia’s southeastern state of Victoria, home to the city of Melbourne, will more than double property taxes for foreign buyers and treble royalties from coal, the government has announced. The hike in stamp duty on residential properties purchased by foreigners appears to run counter to a warning earlier in the month from the central bank that recent rapid rises in property prices could stall if international demand, particularly from China, slipped.
TRADING STRATEGY :
- BUY GOLD ABOVE 1235 TARGET 1240 1246 SL 1229
- SELL GOLD BELOW 1229 TARGET 1224 1218 SL 1235