INTERNATIONAL COMMODITY NEWS :
- Crude oil prices rose by 0.24 per cent on Wednesday on heavy short covering after suffering one of its worst single-day sessions on the calendar year as investors continued to react to devastating wildfires in Canada and widespread changes in the leadership structure of Saudi Arabia’s leading state-run oil company.Traders continued to monitor the catastrophic fires in Canada where estimates of the number of barrels being forced offline from the firestorms continued to rise.
- Gold prices rose by 0.70 per cent on Wednesday as investors continued to monitor movements in the US dollar. The greenback fell as investors locked in gains following its steep rise after continued comments about possible intervention by the Japanese government. Dollar weakness usually benefits gold as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
- The correction last evening was not as eventful as Monday in Copper prices. June futures closed at Rs 312.15, down
0.32%. The data from China’s National Statistics Bureau said its Consumer Price Index for April rose 2.3% on an annual basis, slightly lower than consensus estimates of 2.4% and in line with March’s reading.The prices from last few days have been under severe threat first by the Chinese import numbers and now the news of Freeport selling its key Copper business.
ECONOMY NEWS :
- U.S. policymakers are “pretty clear” in their views that Japan should refrain from any steps to intentionally weaken the yen, such as intervention in currency markets, a key economic adviser to Prime Minister Shinzo Abe said on Wednesday. Japanese financial authorities thus face a tough situation, with few options to contain unwelcome yen rises, said Koichi Hamada, an emeritus professor at Yale University who has close contacts with senior U.S. and Japanese policymakers.
- India will start imposing capital gains taxes on investments coming from Mauritius starting from next year as part of a new tax treaty agreed by both countries, according to a government statement on Tuesday.The taxes on capital gains will apply to investments made from April 1, 2017 and will be imposed at 50 percent of the domestic rate until March 31, 2019, and at the full rate thereafter.
- The European Central Bank’s easy monetary policy is justified by a subdued growth outlook in the euro zone, a top official at Germany’s Bundesbank said on Wednesday, reaffirming his institution’s defence of the ECB against German criticism. “The current, expansionary monetary policy is justified by the subdued outlook for inflation and subdued growth – although of course there are side effects that increase with time, and even if you can argue about individual instruments,” Bundesbank board member Andreas Dombret said at an event in Berlin.
TRADING STRATEGY :
- BUY GOLD ABOVE 1280 TARGET 1285 1292 SL 1273
- SELL GOLD BELOW 1270 TARGET 1265 1658 SL1275