INTERNATIONAL COMMODITY NEWS :
- U.S. oil futures held steady close to multi-month highs on Friday, as a decline in U.S. oil stocks countered news that the Organization of the Petroleum Exporting Countries failed to place a ceiling on oil production at their meeting on Thursday in Vienna.U.S. crude futures for July delivery were steady at $49.18 a barrel, near recent seven-month highs of 50.21.
- Gold drifted lower on Friday in Asia as investors remained cautious ahead of this month’s Federal Reserve review of interest rates. On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 0.19% to $1,210.25 a troy ounce.Silver futures for July delivery eased 0.31% to $15.975 a troy ounce.
- Silver futures advanced during evening trade in the domestic market on Friday as investors and speculators eyed the key US May jobs data which may dictate whether the US Fed raises interest rates as early as this month. The world’s biggest economy is tipped to have added a robust 160K jobs in May with the unemployment rate slipping to 4.9 percent analysts’ estimates showed.
ECONOMY NEWS :
- With a June Federal Reserve interest rate hike likely off the table following Friday’s dismal jobs data, U.S. equity investors may shift their focus again to whether the economy is losing too much steam to allow stocks to advance. Investors will comb economic data over the next few weeks to see if the weak payrolls report reflected a wider trend in the U.S. economy or was an outlier. A first hint of the central bank’s view of that could come Monday with a speech on the economic outlook by Fed Chair Janet Yellen.
- Commercial property investors are writing clauses into contracts giving buyers the right to walk away from real estate deals if Britain votes to leave the European Union this month, as a way to unfreeze a sector stalled by uncertainty over Brexit. Transactions in commercial property fell by 40 percent in the first quarter, according to the Bank of England, with many buyers and sellers waiting to see the outcome of the June 23 referendum in case an exit vote hurts property prices.
- Growth of services activity in India softened for the second straight month in May, as new business inflows expanded at the slowest rate since July 2015. Although some firms took on additional staff, the overall pace of job creation was fractional. Input costs rose again, leading to a further increase in prices charged. Although service providers remained optimistic that output will expand in the year ahead, the level of confidence was the lowest recorded since February.
TRADING STRATEGY :
- SELL GOLD BELOW 1243 TARGET 1240 1235 SL 1246
- BUY GOLD ABOVE 1247 TARGET 1250 1255 SL 1243