INTERNATIONAL COMMODITY NEWS :
- Gold futures were trading lower during the evening trade in the domestic market on Tuesday as participants lightened their positions largely in tandem with a weak trend overseas.Gold prices fall tracking weakness in the overseas markets where gold dropped after posting the biggest two-day gain in more than seven years following the UK s vote to exit from the European Union and profit-booking by speculators weighed on gold futures.
- Crude oil futures surged over 3 per cent during evening trade in the domestic market on Tuesday as investors and speculators booked fresh positions in the energy commodity after the IEA expects the oil market to balance in 2016. The Paris-based agency said that global oil demand may increase at a rate of 1.3 million barrels per day in 2016 with a relatively small rise in Non-OPEC supply of nearly 200000 barrels per day.
- Silver futures retreated during noon trade in the domestic market on Tuesday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as the lure for safe haven assets receded as concerns over Brexit eased amid speculation that policymakers may take some measures to restore confidence in fragile financial markets.
ECONOMY NEWS :
- Japanese Prime Minister Shinzo Abe on Wednesday urged the central bank to provide ample funds to the market to ensure liquidity and keep the wheels of economy turning in the wake of Britain’s shock vote to exit the European Union. “A sense of uncertainty and worry about risks remain in the markets,” Abe told a meeting between the government and the Bank of Japan to discuss market developments after the Brexit vote rocked global financial markets.
- Britain’s vote to leave the European Union could pose a new drag on the U.S. economy at a time when momentum in the U.S. job market may already by slowing, Federal Reserve governor Jerome Powell said on Tuesday.In the first of Fed policymakers to comment since the shock vote in Britain last week, Powell said the Brexit referendum had shifted global risks “to the downside,” potentially posing a new threat to the Fed’s outlook.
- U.S. Secretary of State John Kerry held out the possibility on Tuesday of negotiating separate trade deals with Britain and the European Union at the same time, but a spokesman later said he did not mean to suggest such a plan. Speaking in Colorado, Kerry was asked about President Barack Obama’s April comment that Britain would go to the “back of the queue” if it voted to quit the EU, as it did on Thursday, and Washington would focus on a wider trade deal with the EUcalled the Transatlantic Trade and Investment Partnership (TTIP).
TRADING STRATEGY :
- BUY GOLD ABOVE 1307 TARGET 1312 1318 SL 1302
- SELL GOLD BELOW 1304 TARGET 1299 1293 SL 1309