INTERNATIONAL COMMODITY NEWS :
- Crude oil prices rose by 0.31 per cent on Wednesday after US industry supply data noted a build in crude but refined products showed healthy drawdowns. The American Petroleum Institute said its estimate of weekly crude oil stock showed a build of 1.265 million barrels.
- Gold prices fell by 0.45 per cent on Wednesday as the US dollar staged a recovery after a pair of Federal Reserve officials talked up US interest rate hikes this year. Atlanta Fed President Dennis Lockhart said the US could see two further interest rate rises this year while San Francisco Fed President John Williams said that he would support an interest-rate hike in June as long as he sees continued progress on the economy inflation and jobs.
- Zinc, a metal that is used in Galvanization gained in the month of April 2016 compared to March 2016. On LME, prices averaged at $ 1851 per tonne in April 2016 compared to $ 1802 per tonne in March 2016, up 2.7%. International Lead and Zinc Study Group (ILZSG) mentioned that World usage of refined zinc metal is expected to increase by 3.5% to 14.33 million tonnes in 2016.
ECONOMY NEWS :
- Atlanta Federal Reserve President Dennis Lockhart said on Tuesday that Britain’s vote on whether to stay in the European Union could “loom large” as the U.S. central bank contemplates whether to raise interest rates at its next policy meeting.”Brexit could be a source of heightened global uncertainty,” Lockhart said in a speech before the World Affairs Council of Jacksonville, Florida, adding it “has some potential to loom large as we approach the June meeting.”
- Greater disclosure of all the capital requirements faced by banks would reinforce financial stability and reassure investors no hidden dangers lurk on balance sheets, a top European Union banking regulator said on Wednesday. Andrea Enria, chairman of the European Banking Authority (EBA), said the global financial crisis following the collapse of U.S. bank Lehman Brothers in 2008 showed how opacity could destabilise markets.
- Chinese consumers were increasingly optimistic about the car buying environment in April but were less likely to act on this assessment as plans to buy a car over the next 12 months continued the downward movement seen since the start of the year. Meanwhile, a fall in expected running costs helped boost overall sentiment towards the sector.
TRADING STRATEGY :
- BUY GOLD ABOVE 1285 TARGET 1290 1296 SL BELOW 1280
- SELL GOLD BELOW 1275 TARGET 1270 1264 SL ABOVE 1280