INTERNATIONAL COMMODITY NEWS :
- Oil prices ended a three-day bull run on Friday, falling as a strong dollar made it more expensive to hold oil positions though losses were cushioned by Nigerian outages that have slashed output to the lowest in 22 years. The dollar (DXY) hit a two-week high against a basket of currencies on Friday, lifted by expectations the U.S. Federal Reserve will raise rates again before any other major central bank.
- Gold prices rose on Friday, but gains were limited by a stronger U.S. dollar as investors awaited the release of a number of U.S. economic reports later in the day.On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 0.35% at $1,275.80.The June contract ended Thursday’s session 0.34% lower at $1,271.20 an ounce.Futures were likely to find support at $1,258.70, the low from May 10 and resistance at $1,286.50, the high from May 9.
- Zinc prices rose by 0.72 per cent on Thursday at the Multi Commodity Exchange (MCX) due to rising demand in the domestic spot market coupled with a firm trend in the base metal overseas. Sentiments further strengthen as data were revealed which eased demand concerns in China.
ECONOMY NEWS :
- China said it has signed a multilateral agreement to share tax information on multinational companies, paving the way for it to join the fight on global tax avoidance.China signed the country-by-country tax reporting agreement, along with Canada, India, Iceland, Israel and New Zealand, during a meeting of the OECD Forum on Tax Administration (FTA) in Beijing this week, bringing the number of countries that have signed the pact to 39.
- Eurozone gross domestic product climbed 0.5 percent in the first quarter from the prior quarter, when it grew 0.3 percent, the flash estimate from Eurostat showed Friday. Eurostat previously estimated 0.6 percent growth for the first three months of 2016. On a yearly basis, GDP growth eased marginally to 1.5 percent from 1.6 percent. The annual growth rate for the first quarter was revised down from 1.6 percent. At the same time, the EU28 economy logged a 0.5 percent sequential growth and 1.7 percent annual expansion. Both growth figures were kept unchanged from the previous release.
- Germany’s gross domestic product expanded 0.7 percent sequentially in the first quarter, faster than the 0.3 percent growth in the previous three months, according to provisional data published by Destatis on Friday. GDP climbed 1.3 percent on a yearly basis, weaker than the 2.1 percent expansion seen in the previous quarter.
TRADING STRATEGY :
- BUY GOLD ABOVE 1276.3 TARGET 1281.3 1287.3 SL 1271.3
- SELL GOLD BELOW 1271 TARGET 1266 1260 SL 1276