INTERNATIONAL COMMODITY NEWS :
- Oil prices fell on Friday as investors cashed in on a 20-percent rise over the past month, outweighing the impact of crude production cuts in Canada where a huge wildfire has disrupted oil sands operations.Oil prices were down around one percent in early European trading, with global benchmark Brent prices set for their first weekly loss in five weeks.
- Gold prices gained ground on Friday, as traders awaited the release of key U.S. employment data due later in the day amid uncertainty over the strength of the local job market.On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 0.74% at $1,281.55.
- Soaring silver prices are changing the market’s 2016 landscape as bargain-hunting coin buyers step to the sidelines, and futures and options participants take the reins, said Erica Rannestad, senior analyst of precious metals demand at GFMS.”It’s this renewal in the short term of interest in precious metals as a safe haven,” Rannestad said.
ECONOMY NEWS :
- Investors pulled out of equities at the fastest rate since last summer’s market rout and cut cash exposure, opting instead for less risky fixed income and precious metals assets ahead of U.S. jobs data, Bank of America Merrill Lynch (NYSE:BAC) (BAML) said on Friday.Net outflows from equity funds almost tripled from the week before, soaring to $16.9 billion – the largest exodus since September, when investors fled stock markets after China’s surprise devaluation sent global markets into a tail spin.
- Greeks started a 48-hour nationwide strike on Friday in anger at tax and pension reforms pursued by the indebted nation to qualify for more of a multi-billion euro bailout it signed up to last year.Called by the largest private and public sector unions, the strike left ships docked at port, disrupted public transport and kept civil servants and journalists off the job.
- China has told banks to step up checks on their bill financing businesses to curb risks, after the sector was hit by several cases of bill fraud costing many millions of dollars.Chinese officials have warned against systemic risks as banks struggle to cope with rising bad loans as the economy slows.Some banks have suffered heavy losses due to lax internal controls and other irregularities in bill financing, the People’s Bank of China (PBOC) said in a document jointly issued with the China Banking Regulatory Commission (CBRC).
TRADING STRATEGY :
- BUY GOLD ABOVE 1288 TARGET 1293 1299 SL 1283
- SELL GOLD BELOW 1282.5 TARGET 1277.5 1271.5 SL 1287.5