INTERNATIONAL COMMODITY NEWS :
- Copper prices rose by 2.33 per cent on Friday after gross domestic product in the euro zone rose more-than-expected in the last quarter signaling improving sentiment in the region which raised the demand outlook for the metal. In a report Eurostat said that GDP rose to a seasonally adjusted 0.6 per cent from 0.3 per cent in the preceding quarter.
- Crude oil prices rose by 0.69 per cent on Friday lifted by falling output a weaker dollar and as investors looked ahead to rig count data from industry group Baker Hughes. US production fell sharply by 15000 barrels per day to 8.938 million bpd dropping to fresh 18-month lows. The dollar also fell as currency traders reacted to a relatively dovish monetary policy statement from the Federal Reserve from the previous session.
- Gold prices rose by 0.82 per cent on Friday as a weaker US dollar and uncertainty caused by the Bank of Japan’s decision to leave its monetary policy unchanged supported the precious metal. Safe-haven demand strengthened after the BoJ chose on Thursday to hold its monetary policy defying market expectations for additional monetary easing.
ECONOMY NEWS :
- The United States on Friday flagged concerns over economic policies in China, Japan, Korea, Taiwan and Germany and put them on a new monitoring list, mostly due to their large surpluses.It is the first time the U.S.Treasury has implemented provisions passed in Congress this year as part of a trade bill that provided it with new ways to address possible unfair currency practices.
- Eurozone unemployment rate dropped to 10.2 percent in March, the lowest figure since August 2011, when it was the same, figures from Eurostat showed Friday. In July that year, the rate was 10.1 percent. The February jobless rate was revised up to 10.4 percent from 10.3 percent. In January, the figure was 10.4 percent. The jobless rate for the EU 28 fell to 8.8 percent from 8.9 percent, marking the lowest rate since April 2009.
- The number of mortgages approved in UK in March fell unexpectedly to 71,357 from 73,195 in February, the Bank of England reported Friday. It was forecast to rise to 74,200. Total lending to individuals increased by GBP 9.3 billion in March, much bigger than a GBP 5 billion rise seen in February. Within total, secured lending climbed GBP 7.4 billion, larger than a GBP 3.6 billion increase in prior month and an expected growth of GBP 3.7 billion.
TRADING STRATEGY :
- BUY GOLD ABOVE 1297 TARGET 1302 1308 SL 1293
- SELL GOLD BELOW 1290 TARGET 1285 1279 SL 1296