INTERNATIONAL COMMODITY NEWS :
- Oil rose further above $50 a barrel on Wednesday supported by an industry report that showed a large drop in U.S. crude inventories and a boost in investor risk appetite ahead of Britain’s referendum on EU membership.U.S. crude inventories fell by 5.2 million barrels, the American Petroleum Institute (API) said on Tuesday, far more than analysts expected.
- Gold futures extended losses from the prior session in European trade on Wednesday, falling to the lowest level in almost two weeks as investors looked ahead to Thursday’s highly-anticipated referendum on whether Britain will choose to remain in the European Union. Gold for August delivery on the Comex division of the New York Mercantile Exchange fell to an intraday low of $1,263.80 a troy ounce, the weakest since June 9.
- U.S. natural gas futures rose to a new nine-month high on Tuesday, as forecasts for continued above-normal temperatures across most parts of the U.S. throughout most of summer raised expectations for power generation demand to meet air conditioning needs. Updated forecasts released Monday said temperatures in the Midwest and eastern seaboard will be warmer than previously expected going into the July 4 holiday weekend.
ECONOMY NEWS :
- The International Monetary Fund said on Wednesday the U.S. economy was “overall in good shape,” with growth set to regain momentum despite an overvalued dollar, but it warned that too many Americans were dropping out of the workforce or living in poverty. The IMF expects U.S. economic growth of 2.2 percent in 2016, a downgrade from 2.4 percent it forecast in April. But the Fund maintained its outlook for growth to recover to 2.5 percent in 2017, with inflation rising slowly toward the Federal Reserve’s goal of two percent, it said in a statement at the conclusion of its annual review of U.S. economic policies.
- The European Central Bank reinstated Greek banks’ access to its cheap funding operations on Wednesday after more than a year on an emergency lifeline and said it would examine later whether to add Greek debt to its asset purchases. The restoration is a big step toward normalizing an economy that is still in recession, weighed down by capital controls and adjustments related to Greece’s third bailout since 2010, agreed last year and worth up to 86 billion euros ($97 billion).
- Federal Reserve Chair Janet Yellen said she has not scheduled special meetings for Friday or Saturday in order to respond to the “Brexit” vote in Britain over its membership in the European Union.”Brexit is a risk that we are monitoring. We will be watching closely to see what the vote is and what possible repercussions it might have,” Yellen told lawmakers on Wednesday ahead of Britain’s vote scheduled for Thursday, adding in response to a question over whether she has special meetings scheduled: “No, I have not.”
TRADING STRATEGY :
- BUY GOLD ABOVE 1270 TARGET 1275 1281 SL 1265
- SELL GOLD BELOW 1260 TARGET 1255 1249 SL 1265