INTERNATIONAL COMMODITY NEWS :
- Gold futures were higher in European trade on Thursday, as market players looked ahead to a raft of speeches from Federal Reserve officials later in the day to judge the balance of opinion among policymakers on the prospect of further rate hikes.St. Louis Fed President James Bullard is due to speak at 15:30GMT, or 11:30AM ET, at Santa Barbara County’s Economic Summit.
- A huge wildfire near Canada’s oil sands region and escalating tensions in Libya stoked concern among investors over a near-term supply shortage, driving crude prices up for the first time in a week on Thursday.Brent crude futures (LCOc1) rose $1.19 on the day to $45.81 a barrel by 0845 GMT, while U.S. West Texas Intermediate (WTI) futures (CLc1) rose $1.45 to $45.23.
- WTI Crude oil futures are lingering around $45 per barrel mark as steady buying has emerged in the counter after a sharp tumble on Monday. US inventories stay around record highs even as crude output is falling. Oil traders also seem to be eyeing the firmness in gasoline demand ahead of the peak driving season.MCX Crude oil futures ended just above Rs 2900 per barrel yesterday and should see a positive opening following the recovery in global prices.
ECONOMY NEWS :
- European rules for winding down banks should be reconsidered and should only be applied to newly issued financial instruments, Bank of Italy governor Ignazio Visco said on Thursday.In written comments prepared for a speech in Florence, Visco said applying the new rules to existing securities “can indeed be a source of serious liquidity risk and financial instability”.
- European Central Bank executive board member Yves Mersch took the defense of ECB policies directly to critical Germans on Thursday, reassuring them there is no plot underway to eliminate cash altogether.Tensions between the ECB and Germany have worsened since the bank unveiled fresh stimulus in March, expanding asset buys and cutting interest rates deeper into negative territory, much to the objection of Germany’s Bundesbank.
- India is considering setting up an independent panel to help state-owned banks negotiate settlements with big businesses on bad loans, in order to shield bankers from a populist backlash they say is hobbling efforts to clean up their balance sheets. India’s $121 billion troubled debt pile, over $100 billion of which is on the books of state owned banks, has come under close scrutiny from prosecutors, the media and politicians. Some have blamed banks for going too easy on corporate tycoons, and do not want taxpayers propping up the struggling banking sector.
TRADING STRATEGY :
- BUY GOLD ABOVE 1283.5 TARGET 1288.5 1294.5 SL BELOW 1278.5
- SELL GOLD BELOW 1274.5 TARGET 1269.5 1263.5 SL ABOVE 1279.5