INTERNATIONAL COMMODITY NEWS :
- Oil prices edged lower on Thursday as traders took profits after three sessions of gains, though prices remained close to their highest this year thanks to a fall inU.S. crude inventories and supply disruptions.International Brent crude oil futures traded 13 cents a barrel lower at $52.38 a barrel at 0845 GMT, after setting a 2016 high of $52.86 a barrel earlier in the session. U.S. crude fell by 5 cents a barrel to $51.20 after also hitting a new 2016 high at $51.67.
- Gold futures extended strong overnight gains in European trade on Thursday to hit a fresh three-week high as a broadly weaker U.S. dollar due to fading expectations for a summer rate hike boosted the precious metal. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.1% at 93.54, not far the prior session’s five-week low of 93.41.
- Copper futures were trading higher in the domestic market on Thursday as speculators indulged in widening their positions on hopes that the US Fed will hold off on raising interest rates which kept a lid on dollar. The dollar is retreating after weak American jobs data pushed out bets on a hike in rates by the Fed.
ECONOMY NEWS :
- Investors pumped the most funds into U.S.-based emerging-market stock funds since March in the latest week, Lipper data released on Thursday showed, as the U.S. Federal Reserve looked less likely to hike interest rates. The funds took in $1.7 billion in the week ended June 8, the largest inflow since the $3.1 billion in 7-day period ended March 23.
- Brazil is considering an emergency loan to the cash-strapped state of Rio de Janeiro as it prepares to host the Olympic Games in less than two months, according to two senior government officials familiar with the situation. The loan would be guaranteed by the state’s participation in local companies and could be extended to the states of Minas Gerais and Rio Grande do Sul, which are struggling to pay employees and pensioners as a crippling recession reduces tax revenues.
- The net worth of U.S. households rose in the first quarter as a boost in real estate values offset a fall in stock market prices, a report by the Federal Reserve showed on Thursday.Families’ net worth increased to $88.1 trillion over the quarter, up from a revised $87.3 trillion in the previous period.The S&P 500 (SPX) dropped almost 10 percent from January through mid-February on fears over China’s economic rebalancing, a global growth slowdown and low oil prices.
TRADING STRATEGY :
- BUY GOLD ABOVE 1268.25 TARGET 1271.50 1275 SL 1265.45
- SELL GOLD BELOW 1265.50 TARGET 1262 1258 SL 1268.50