INTERNATIONAL COMMODITY NEWS :
- Silver futures plunged during morning trade in the domestic market on Monday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as a stronger dollar curbed the lure for the bullion as an alternative asset.Stronger greenback makes silver more expensive for those holding other currencies thus dimming demand.
- Oil prices were modestly lower in quiet European trade on Monday, as a broadly stronger U.S. dollar prompted market players to lock in gains from a recent rally which took prices above the key $50-level.Both Brent and West Texas Intermediate oil futures cracked $50 late last week for the first time since October as traders eyed supply disruptions in Nigeria, France, Canada and Venezuela.
- Gold futures fell sharply in European trade on Monday, dropping below the key $1,200-level for the first time since February as investors continued to factor in an increased chance of a near-term U.S. interest rate rise.In remarks made during an appearance at Harvard University Friday afternoon, Federal Reserve Chair Janet Yellen said a rate hike in the coming months “would be appropriate,” if the economy and labor market continue to improve.
ECONOMY NEWS :
- German Finance Minister Wolfgang Schaeuble said on Monday that the European Central Bank’s responsibility for the entire euro zone meant the institution was not implementing the best monetary policy for Germany. He said it was necessary to recognise that “the ECB has to pursue a policy in a currency union for all 19 member states that is not the optimal monetary policy for Germany”.
- St. Louis Federal Reserve President James Bullard said on Monday global markets appear to be “well-prepared” for a summer interest rate hike from the Fed, although he did not specify a date for the policy move. “My sense is that markets are well-prepared for a possible rate increase globally, and that this is not too surprising given our liftoff from December and the policy of the committee which has been to try to normalize rates slowly and gradually over time,” Bullard told a news conference after speaking at an academic conference in Seoul.
- India plans legislation to close a regulatory loophole that has made it possible for fraudsters to dupe millions of savers,
as Prime Minister Narendra Modi strives to bring the rural poor into the mainstream banking system.Unscrupulous operators have bilked savers of billions of dollars by running pyramid schemes or promoting questionable investments in everything from tree plantations to farming emus, a flightless bird.
TRADING STRATEGY :
- BUY GOLD ABOVE 1211 TARGET 1216 1222 SL 1206
- SELL GOLD BELOW 1199.7 TARGET 1194.7 1188.7 SL 1204.7