INTERNATIONAL COMMODITY NEWS :
- Oil prices edged lower in European trade on Thursday, after rallying more than 3% overnight after a larger-than- expected gasoline draw eased concerns about global supply glut.Crude oil for September delivery on the New York Mercantile Exchange dipped 7 cents, or 0.14%, to trade at $40.78 a barrel by 07:52GMT, or 3:52AM ET.A day earlier, New York-traded oil jumped $1.32, or 3.34%, after data showed that gasoline supplies in the U.S. fell sharply last week, offsetting a surprise build in crude stockpiles.
- Gold prices added to overnight losses in European trade on Thursday, as the U.S. dollar strengthened with investors focused on the Bank of England’s policy announcement later in the session.The BOE will release its rate decision, minutes of its Monetary Policy Committee meeting and its quarterly inflation report at 11:00GMT, or 07:00AM ET, on Thursday.
- Nickel futures tumbled by more than 2 per cent during noon trade in the domestic market on Thursday as investors and speculators exited positions in the industrial metal amid weak physical demand for nickel from alloy-makers in the spot market. Mixed US economic data signaled an uncertain demand outlook for metals as services activity cooled in July but private employment growth was stronger.
ECONOMY NEWS :
- The Bank of England cut interest rates on Thursday for the first time since 2009, revived its bond-buying programme and said it would take “whatever action is necessary” to achieve stability in the wake of Britain’s vote to leave the European Union. The central bank said it expected the economy to stagnate for the rest of 2016 and suffer weak growth throughout next year. It cut its main lending rate to a record low 0.25 percent from 0.5 percent, in line with market expectations.
- U.S. municipal bond funds reported $783.9 million of net inflows in the week ended Aug. 3, compared with $782.9 million in inflows in the previous week, according to data released by Lipper on Thursday.The four-week moving average remained positive at $950.7 million, said Lipper, a unit of Thomson Reuters.
- China’s economic growth target appears to have meant higher levels of debt to GDP for the country, Dallas Federal Reserve Bank President Robert Kaplan said on Thursday in Shanghai.Kaplan said on Tuesday in Beijing that he is monitoring how slowing growth, high levels of overcapacity and high levels of debt to gross domestic product (GDP) in major economies outside the United States might be impacting economic conditions in the U.S.
TRADING STRATEGY :
- BUY GOLD ABOVE 1365 TARGET 1370 1376 SL BELOW 1360
- SELL GOLD BELOW 1358 TARGET 1353 1347 SL ABOVE 1363