INTERNATIONAL COMMODITY NEWS :
- Silver futures fell during morning trade in the domestic market on Wednesday as investors and speculators exited positions in the precious metal amidst growing speculation that the US Federal Reserve is moving closer to raising interest rates dimming the lure for the bullion as a store of value.
- Gold prices fell by 0.46 per cent on Wednesday as investors continued to factor in an increased chance of a near-term US interest rate rise. Market players will pay close attention to comments from a number of Fed officials later in the day for further hints on the timing of a US rate hike. Besides the Fed speakers traders will focus on an advanced read on international trade for April and FHFA home prices.
- Crude oil prices rose by 0.85 per cent on Wednesday after US industry stock data showed a sharp drop at the end of last week. The American Petroleum Institute said that crude oil stock dropped 5.137 million barrels last week compared to a decline of 3.3 million barrels seen as refineries typically ramp up gasoline production as the summer driving season approaches next week in the US with the Memorial Day weekend.
ECONOMY NEWS :
- German Vice Chancellor Sigmar Gabriel on Wednesday welcomed an overnight euro zone deal with Greece that offers Athens its firmest offer yet of debt relief.”We welcome in particular the Eurogroup (of euro zone finance ministers) fundamentally agreeing on a package of debt relief for Greece,” Gabriel, leader of Germany’s centre-left Social Democrats, said in a written statement sent to Reuters.
- Regulators have yet to get a firm handle on the world’s $35 trillion shadow banking sector with supervision and data gathering still too patchy for spotting risks properly, the global Financial Stability Board said on Wednesday. Banks face tougher rules since the 2007-09 financial crisis, prompting a shift in risks to shadow banking like repurchase agreements, securitization or pooling of debt, money market funds and securities lending by asset managers.
- Confidence among Indian businesses fell to a five-month low in May led by weak export orders and higher raw materials costs. The MNI India Business Sentiment Indicator, a gauge of current sentiment among BSE-listed companies, fell to 61.8 in May from 62.4 in April. This is the third consecutive decline and was led solely by the manufacturing sector, while sentiment among construction and service sector firms improved.
TRADING STRATEGY :
- BUY GOLD ABOVE 1230.30 TARGET 1235.30 1241.30 SL 1225.30
- SELL GOLD BELOW 1220.20 TARGET 1215.20 1209.20 SL 1226.20