INTERNATIONAL COMMODITY NEWS :
- Silver futures were trading lower during noon trade in the domestic market on Tuesday as investors and speculators stuck to a cautious approach after Fed Chair Janet Yellen stuck to her view over a gradual hike in US interest rates despite signs last week that the US job market was losing momentum.
- Copper futures fell during late morning trade in the domestic market on Tuesday as traders awaited China’s foreign trade data to be released tomorrow which may offer fresh cues over the health of the world’s biggest metals consuming nation.A gauge of US labour market conditions deteriorated sharply in May to -4.8 from a revised -3.4 in April confirming the slowdown in the job market in the world’s biggest economy that may curb demand.
- Crude oil futures consolidated an overnight rally in early trade on Tuesday as reports of more attacks by militants on Nigeria’s oil operations which have pushed the country’s output to the lowest level in 27 years and shut the majority of the country’s 23 gas-powered generators raised supply concerns.
ECONOMY NEWS :
- India’s central bank is opposed to banks taking a majority stake in planned stressed-asset funds, and would rather have external investors provide their expertise in managing soured loans, Governor Raghuram Rajan said on Tuesday.The Indian government is looking for ways to reduce banks’ distressed debt pile of $120 billion, or 11.5 percent of all loans, as record bad loans restrict the lenders’ abilities to provide fresh credit to fuel the economy.
- British banks and regulators should disclose more of their communications to prevent a repeat of the financial crisis, a senior UK lawmaker said on Tuesday.Andrew Tyrie, chairman of parliament’s treasury committee, has written to Andrew Bailey, a deputy governor of the Bank of England, saying he wants a detailed explanation of how the regulator balances secrecy and public disclosures.
- China and the United States agreed to push forward reforms at the International Monetary Fund (IMF) to increase quotas for emerging economies, China’s vice premier Wang Yang said on Tuesday. The United States also will fully consider the impact that normalising monetary policy will have on international markets, he added, at the end of high-level talks between China and the United States in Beijing.One U.S. bank and one Chinese bank will be appointed to act as clearing banks for yuan business in the U.S., he added.
TRADING STRATEGY :
- BUY GOLD AROUND 1240 TARGET 1245 1250 SL 1236
- SELL GOLD AROUND 1250-1251 TARGET 1246 1240 SL 1253