INTERNATIONAL COMMODITY NEWS :
- Natural Gas jumped during evening trade in the domestic market on Monday as investors and speculators booked fresh positions in the energy commodity after a less than expected rise in US gas supplies boosted sentiment. The EIA said that US gas stockpiles climbed by 82 billion cubic feet in the week ended May 27 2016 compared to a rise of 85 billion cubic feet estimated by analysts.
- Copper futures jumped by over 1 per cent during noon trade in the domestic market on Monday tracking a firm trend overseas as a softer dollar following Friday’s dismal US jobs data bolstered the appeal of the industrial metal as an alternative asset.Softer greenback makes copper cheaper for those holding other currencies thus lifting demand.
- Silver advanced during noon trade in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal as dismal US May jobs data pushed back bets of an imminent US Federal Reserve interest rate hike bolstering the appeal of the bullion as a store of value.
ECONOMY NEWS :
- Federal Reserve Chair Janet Yellen on Monday gave a largely upbeat assessment of the U.S. economic outlook and said interest rate hikes are coming but, in an omission that stood out to some investors, gave little sense of when. Overall, a Yellen said, “I see good reasons to expect that the positive forces supporting employment growth and higher inflation will continue to outweigh the negative ones.”
- The European Commission is confident that Greece will conclude the reforms needed to unlock bailout funds before next week’s meeting of euro zone finance ministers, top officials said on Monday.Greece and its international lenders wrapped up the bulk of reforms needed for badly needed bailout cash in May, but left some loose ends which must be tied up before Athens can receive installments of 10.3 billion euros ($11.48 billion) by September.
- The U.S. Federal Reserve on Monday awarded $53.35 billion of one-day, fixed-rate reverse repurchase agreements to 36 bidders at an interest rate of 0.25 percent, the New York Fed said on its website. On Friday, the Fed allotted $58.18 billion in three-day reverse repos to 34 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.25 percent.
TRADING STRATEGY :
- BUY GOLD ABOVE 1248.8 TARGET 1253.8 1259.8 SL 1243.8
- SELL GOLD BELOW 1242.5 TARGET 1237.5 1231.5 SL 1247.5