INTERNATIONAL COMMODITY NEWS :
- Copper futures plunged by more than 1 per cent during noon trade in the domestic market on Monday as investors and speculators exited positions in the industrial metal as dismal China trade data underlined concerns over the health of the world’s second biggest economy clouding the demand outlook for copper.Chinese exports fell 1.8 per cent in dollar terms in April and imports suffered an 18th straight month of decline.
- Gold prices fell by 0.75 per cent on Monday even as the Bank of Japan minutes saw some board members down-beat on hitting the inflation target within the current forecast suggesting continued easy policy. The Bank of Japan published the minutes of its April policy meeting showing some numbers expect the target date for 2 per cent sustained inflation may need to be pushed back.
- Crude oil prices rose by 1.71 per cent on Monday as supply outages persisted over the weekend from Canada’s wildfires that have shut half the country’s vast oil sands capacity. Cooler weather light rain and winds opposed to the direction of flames helped control the advance of the blaze that razed Alberta’s oil sands boomtown Fort McMurray. Yet energy firms such as Statoil and Husky Statoil shut their facilities in the area as a precaution.
ECONOMY NEWS :
- The U.S. economy’s fundamentals are solid and growth this year should pick up to around 2.5 percent, but the Federal Reserve’s current ‘wait and see’ approach to monetary policy is appropriate, a Fed policymaker said on Monday.Charles Evans, president of the Chicago Fed, told a conference in London that business investment and inflation remain lower than he would like.
- Japan’s consumer confidence weakened less-than-expected in April, after improving in the previous month, survey data from the Cabinet Office showed Monday. The seasonally adjusted consumer confidence index fell to 40.8
in April from 41.7 in March. Among the individual components of the survey, the overall livelihood index worsened to 39.6 in April from 40.5 in the prior month. Similarly, the employment sub-index dropped from 43.9 to 42.8. At the same time, the indicator for income growth improved slightly to 40.8 from 40.6.
- China’s exports dropped 1.8 percent year-over-year in April, while it was expected to remain flat, data published by the General Administration of Customs revealed. Imports plunged 10.9 percent in April from a year ago. The visible trade surplus of the country came in at $45.56 billion in April, which was above the expected surplus of $40.00 billion.
TRADING STRATEGY :
- BUY GOLD ABOVE 1280 TARGET 1285 1291 SL 1275
- SELL GOLD BELOW 1277 TARGET 1272 1266 SL 1282