INTERNATIONAL COMMODITY NEWS :
- Copper prices fell by 0.92 per cent on Tuesday afternoon due to weak demand in global market coupled with sliding London Metal Exchange index. Further due to burgeoning inventories levels in Asian countries which has jumped by 8 per cent to the highest since January 20 in addition to lower demand in Chines market brought down the copper future.
- Crude oil prices fell by 0.66 per cent on Tuesday with few signals from Saudi Arabia that an excessive supply glut is about to level off anytime in the near-term future. Saudi officials at the Shaybah Oil field in the Al-Khali desert announced that it will ramp up production by 250000 barrels per day to 1 million in May.
- Gold prices fell by 0.40 per cent on Tuesday as investors readjusted positions ahead of the Federal Reserve’s two-day monetary policy meeting due to begin later in the day. The Fed is not expected to take action on interest rates at the conclusion of its two-day policy meeting on Wednesday but traders will be looking for its take on the global economy and its monetary policy outlook.
ECONOMY NEWS :
- The European Union should hold off for now from regulating blockchain, the technology that underpins the virtual currency bitcoin, EU lawmakers are set to agree on Tuesday in the latest example of a softly-softly approach by authorities.”We don’t want pre-emptive regulation, but we do want precautionary monitoring,” Jakob von Weizsaecker, a German center-left member of the European Parliament, told Reuters.
- With the U.K.’s June 23 referendum on its membership in the European Union (EU) just eight weeks away, Britons in favor of staying declined in the most recent poll, but undecided votes could sway the results in either direction. Voter support for the Remain camp declined by two points to 51%, while the Leave campaign, coined Brexit, increased by the same amount to 43%, according to the latest ORB poll conducted for The Telegraph.
- British support for staying in the European Union has fallen by two percentage points to 51 percent according to a poll, a decline that may suggest U.S. President Barack Obama’s words in favour of UK membership had yet to have an impact.Support for leaving the 28-member bloc in a referendum has increased by 2 percentage points to 43 percent in the past week, little changed from figures published on April 19, according to the ORB poll of 800 people for The Daily Telegraph newspaper on Tuesday.
TRADING STRATEGY :
- BUY GOLD ABOVE 1240 TARGET 1245 1251 SL BELOW 1235
- SELL GOLD BELOW 1227 TARGET 1222 1216 SL ABOVE 1232