INTERNATIONAL COMMODITY NEWS :
- Oil prices edged lower on Wednesday, extending losses to a third straight session, as a stronger dollar weighed and economic concerns rose following Britain’s vote to leave the European Union.Investors also awaited data on U.S. crude inventories, delayed due to Monday’s Independence Day holiday.Global benchmark Brent futures were down 30 cents at $47.66 a barrel at 0852 GMT after a 4.1 percent drop on Tuesday.
- Gold rallied to its highest since 2014 on Wednesday and oil struggled to recover from deep losses, as renewed fears over the impact of Britain’s exit from the European Union pushed investors toward safe havens.Risk aversion gripped markets – Asian stocks tumbled and sterling plumbed a 31-year low – amid worries global efforts to boost liquidity may not be enough to cushion the impact of Brexit.
- Silver futures closed higher in the domestic market on Monday as investors continued to search for safety tracking positive cues from overseas amid talk of fresh central-bank stimulus to avoid economic damage from Brexit. Analysts said widening of bets by participants after silver rallied to near a two-year high as investors speculated central banks will have to continue supporting the economy in the wake of Britain’s vote to leave the EU influenced white metal prices at futures trade.
ECONOMY NEWS :
- The Chinese government’s call to the nation to build an innovation-driven economy from the top down has sparked a rush by local governments to construct new buildings in the name of supporting creativity.Innovation centers have been popping up around the country and are set to more than double to nearly 5,000 in the next five years, according to internet research firm iiMedia. The only problem for local governments; entrepreneurs are not moving in.
- Analysts have nudged up their outlook for the Australian and New Zealand dollars as relatively high bond rates at home and a plunge in the British pound made the Antipodean currencies more attractive to yield-hungry investors.A Reuters poll of 55 analysts saw the Aussie at $0.7300 in one month, a cent higher than in the June poll. Still, the general expectations was that it would ease over time reaching $0.7200 in three months and $0.7000 in a year.
- Brazil will likely raise taxes lower next year to reduce a key budget deficit to between 150 and 160 billion reais ($48.06 billion), congressman Arthur de Lira told Reuters on Wednesday after a meeting with government officials to discuss the target.Lira said the government’s economic team will meet again early on Thursday to decide on the target for the primary budget deficit, or the public sector’s shortfall before interest debt payments.
TRADING STRATEGY :
- BUY GOLD ABOVE 1375 TARGET 1380 1386 SL 1370
- SELL GOLD BELOW 1364.4 TARGET 1359.4 1353.4 SL 1369.4