INTERNATIONAL COMMODITY NEWS :
- Crude oil prices rose on Friday for the first time in seven days as markets took a breather from concerns about the impact of Britain’s possible exit from the European Union.Brent crude futures were up 59 cents, or 1.3 percent, at $47.78 a barrel around 0650 GMT after slumping 3.6 percent in the previous session.
- Gold prices slid lower on Friday, as traders locked in profits from the precious metal’s rally to 23-month highs on Thursday, sparked by a broadly weaker U.S. dollar. On the Comex division of the New York Mercantile Exchange, gold futures for August delivery lost 1.03% to $1,285.05. The August contract ended Thursday’s session 0.78% higher at $1,298.40 an ounce.
- Copper futures were trading higher in the domestic market on Friday on pick up in spot demand even as metal weakened overseas. Market men attributed the rise in copper futures to a firming trend at the domestic spot market on the back of pick up in industrial demand.
ECONOMY NEWS :
- The New York Federal Reserve said on Friday it had lowered its forecasts for U.S. economic growth in the second and third quarter largely due to recent negative data on domestic manufacturing activities.U.S. gross domestic product is on track to grow at an annualized pace of 2.1 percent, slower than the 2.4 percent rate estimated two weeks ago, while third-quarter GDP would moderate to a 2.1 percent growth rate from 2.2 percent calculated two weeks earlier, the regional central bank said on its website.
- The U.S. economy is on track to grow by a 2.8 percent annualized rate in the second quarter following data on housing starts in May, Atlanta Federal Reserve’s GDPNow forecast model showed on Friday. The latest GDP estimate was unchanged from the pace calculated on Tuesday, the regional Fed said on its website.
- Satisfying new accounting rules for bad loans should not be a burden for small banks, U.S. banking regulators said on Friday. The Financial Accounting Standards Board this week set a new framework for loan-loss reserves: the formula for how banks should account for bad loans.The rules were conceived to reduce the likelihood that investors will get blindsided by a sudden deluge of bad loans, as they did during the 2007-2009 financial crisis.
TRADING STRATEGY :
- BUY GOLD ABOVE 1300 TARGET 1305 1311 SL 1295
- SELL GOLD BELOW 1292.5 TARGET 1287.5 1281.5 SL 1297.5