INTERNATIONAL COMMODITY NEWS :
- Zinc futures rose during noon trade in the domestic market on Tuesday as investors and speculators booked fresh positions in the industrial metal amid a pickup in physical demand for zinc in the spot market.However the gains in the base metal were curbed by weak global factory growth which threatened to cut demand as manufacturing in the US China and Euro area slowed in July.
- Oil edged higher on Tuesday after falling by up to 10 percent in just one week, but investors remained concerned about oversupply weighing on prices.Global benchmark Brent crude was trading up 49 cents at $42.63 a barrel at 1031 GMT (0631 EDT). U.S. West Texas Intermediate (WTI) crude was up 38 cents at $40.44 a barrel, after briefly dipping below$40.
- Gold prices held steady at a three-week high in European trade on Tuesday, as investors awaited fresh signals about the timing of a possible U.S. interest rate increase this year.Gold for December delivery on the Comex division of the New York Mercantile Exchange dipped 40 cents, or 0.03% to trade at $1,359.20 a troy ounce by 06:56GMT, or 2:56AMET, just below a three-week peak of $1,362.00 scaled last Friday.
ECONOMY NEWS :
- China will find an appropriate time to cut interest rates and the reserve ratio requirement, the country’s state planner said in a statement posted on its website on Wednesday, without giving further details.It also said it will lower costs for firms and actively encourage private enterprises to raise capital by issuing bonds.The state planner said it would encourage cities with an oversupply of housing to further shed inventory and continue to push forward supply-side reform.
- At least two members of the Bank of Japan’s board questioned its actions at their June meeting, minutes show, highlighting doubts about the sustainability of its policies.At the June meeting one board member called for the BOJ to reduce its bond buying while another said the BOJ had switched its focus to interest rates away from buying assets. At a subsequent meeting on July 29 the BOJ surprised investors by saying it would release a comprehensive review of its quantitative easing in September, further reinforcing the view that the BOJ’s current policy may be reaching its limit.
- Federal health officials, scrambling to fund efforts to combat the spread of the Zika virus in the United States, said on Tuesday they have provided more stopgap money to various locales while calls grew for Congress to cut short its recess and act. Concern is mounting about the threat posed by the mosquito-borne virus after authorities in Florida last weekreported the first signs of local transmission of Zika in the continental United States.
TRADING STRATEGY :
- BUY GOLD ABOVE 1360 TARGET 1365 1371 SL BELOW 1355
- SELL GOLD BELOW 1355 TARGET 1350 1344 SL ABOVE 1360