INTERNATIONAL COMMODITY NEWS :
- Aluminium futures were trading higher during the afternoon trade in the domestic market on Wednesday as speculators widened their bets amid increase in physical demand for aluminium in the domestic spot market after improving risk appetite on stronge US jobs data and hopes of more monetary stimulus from the central banks.
- Copper futures jumped by more than 1.5 per cent during noon trade in the domestic market on Wednesday as investors and speculators booked fresh positions in the industrial metal as expectations of global economic stimulus and geographical uncertainty surrounding the South China Sea after an international tribunal’s ruling that China had no territorial claims to it boosted the demand for the raw material.
- Silver futures rallied by more than 1 per cent during noon trade in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal tracking a bullish trend in the overseas market amid speculation of increased policy losing across the globe in the wake of Brexit bolstering the lure for the bullion a hedge against the inflationary risk of monetary stimulus.
ECONOMY NEWS :
- Sterling’s plunge since Britain voted to leave the European Union was the biggest in more than 40 years, but its boost to UK exports may well be far less than after similar tumbles in 1992 and 2008.A fragile world economy, more complex world supply chains and near-zero Bank of England interest rates mean Britain may be less able to take advantage of its more competitive exchange rate.
- Brazil’s lower congressional house passed a plan late on Tuesday to allow workers to use part of their severance benefit as collateral for loans in a bid to rekindle demand for credit in the recession-stricken economy.The measure aims to unleash billions of reais in new so-called payroll deductible loans using severance from the FGTS compulsory savings program as a guarantee.
- Britain’s economic prospects will improve after Brexit, the founder of pubs group JD Wetherspoon (L:JDW) said on Wednesday, lashing out at the “irresponsible doom-mongering” of politicians, banks and company bosses in the run up to the referendum.Tim Martin, who chairs the company, was a prominent campaigner for Britain to leave the European Union, appearing in television debates before the June 23 vote and distributing half a million beer mats challenging statistics used by the government.
TRADING STRATEGY :
- BUY GOLD ABOVE 1344 TARGET 1349 1355 SL BELOW 1339
- SELL GOLD BELOW 1336 TARGET 1331 1325 SL ABOVE 1341