INTERNATIONAL COMMODITY NEWS :
- Copper futures were trading lower during the evening trade in the domestic market on Thursday on worries that Britain may vote to exit the EU next week drove investors away from risky assets.Investors focus shifted to safe-haven assets amid global worries weighed on Copper futures.
- Gold futures were trading higher during the afternoon trade in the domestic market on Thursday as speculators raised their bets after the precious metal climbed above USD 1300 an ounce in the global markets.Rally in gold prices in the global market where it again went past USD 1300 after the US Fed scaled back the outlook for interest-rate increase and US Fed Chair Janet Yellen signaled rates may stay lower for longer raised appeal of the yellow metal influenced gold futures in domestic market.
- Silver futures closed lower during the evening trade in the domestic market on Wednesday as speculators trimmed their exposure amid a weak trend in global markets.Speculators indulged in trimming of positions at existing levels and a weak trend in precious metals globally kept pressure on Silver futures.
ECONOMY NEWS :
- The Federal Reserve left rates on hold on Wednesday and lowered projections for how much they will rise in the coming years.”We are quite uncertain about where rates are heading in the longer term,” Fed Chair Janet Yellen said. The U.S. central bank indicated that it still planned two hikes this year.The Fed lowered its growth forecast for 2016 to 2% from 2.2% and its outlook for 2017 to 2% from 2.1%.
- The European Central Bank (ECB) and the Bank of England (BoE)have agreed to provide liquidity to each other if needed, ECB governing council member Ewald Nowotny said ahead of Britons’ June 23 vote on whether to stay in the European Union. “There are agreements between the (ECB and the BoE) for mutual liquidity help, which means that if necessary it will be assured that there would not be liquidity bottlenecks either at English banks or at European banks,” Nowotny said on Thursday.
- Global bonds extended this week’s rally on Thursday, with yields on Japanese and German 10-year government bonds dropping deeper into negative territory as investors digested the latest monetary policy decisions from the Federal Reserve and Bank of Japan, while continuing to worry about a potential U.K. exit from the European Union. The 10-year Japanese government bond yield hit a record low of -0.202% before climbing back to -0.198% by 09:25GMT, or 5:25AM ET. A negative yield implies investors are paying borrowers for the privilege of parking their cash. Bond prices move inversely to yields.
TRADING STRATEGY :
- BUY GOLD ABOVE 1302 TARGET 1307 1313 SL 1297
- SELL GOLD BELOW 1300 TARGET 1295 1289 SL 1300