INTERNATIONAL COMMODITY NEWS :
- Gold futures struggled near three-week lows in European trade on Monday, adding to last week’s sharp losses, as markets continued to factor in the possibility of another interest rate hike by the Federal Reserve as early as June. Gold for June delivery on the Comex division of the New York Mercantile Exchange shed $1.90, or 0.15%, to trade at $1,251.00 a troy ounce by 06:45GMT, or 02:45AM ET.
- Brent oil prices fell for a fourth consecutive session on Monday after Iran insisted it would not freeze crude output, returning investor attention to a global glut.Adding to signs the oil market will remain oversupplied, data showed last week the number of rigs operated by U.S. drillers held steady for the first time this year, following a near two-year slump in the rig count.
- Natural gas futures jumped more than 2 per cent during noon trade in the domestic market on Monday as investors and speculators booked fresh positions in the energy commodity tracking a bullish trend in the overseas market as a smaller than expected gain in US stockpiles eased worries over a supply glut.
ECONOMY NEWS :
- Wall Street futures continued to move to the downside on Monday as markets digested the latest remarks on monetary policy from members of the Federal Reserve (Fed) with two more officials to speak later in the day. The blue-chip Dow futures dropped 27 points, or 0.15%, by 11:02GMT, or 5:02AM ET, theS&P 500 futures fell 3 points, or 0.16%, while the tech-heavy Nasdaq 100 futures traded down 4 points, or 0.10%.
- A relatively tight labor market in the United States may put upward pressure on inflation, raising the case for higher interest rates, St. Louis Federal Reserve President James Bullard said on Monday.The comments come as financial markets have increased expectations for a U.S. interest rate hike in June or July and a range of policymakers are now stating that a rise is firmly on the table for the next policy meeting in June.
- The president of the Federal Reserve (Fed) of St. Louis James Bullard compared and contrasted the difference between the current projection of the U.S. central bank on tightening monetary policy and market expectations on Monday and concluded that there was evidence to support both forecasts.In a speech titled “Slow normalization or no normalization”, Bullard pointed out that the Fed’s view suggested a gradual pace of rate increases over the next several years, while the market’s projection was much shallower, suggesting only a few increases over the forecast horizon which he considered to be “almost no normalization”.
TRADING STRATEGY :
- BUY GOLD ABOVE 1256.3 TARGET 1261.3 1267.3 SL 1251.3
- SELL GOLD BELOW 1247.5 TARGET 1242.5 1236.5 SL 1252.5