INTERNATIONAL COMMODITY NEWS
- Oil prices were under pressure in European trade on Wednesday, falling from a five-week high as market players awaited fresh weekly information on U.S. stockpiles of crude and refined products.The U.S. Energy Information Administration will release its weekly report on oil supplies at 10:30AM ET (14:30GMT) amid expectations for an increase of 522,000 barrels.
- Gold prices edged lower in European trade on Wednesday, reversing overnight gains as market players looked ahead to minutes of the Federal Reserve’s July policy meeting, which many feared could be more hawkish than the statement.Gold for December delivery on the Comex division of the New York Mercantile Exchange shed $9.95, or 0.73%, to trade at $1,346.95 a troy ounce by 3:05AM ET (07:05GMT), after rising $9.40, or 0.7%, on Tuesday.
- Silver futures fell during noon trade in the domestic market on Wednesday as investors and speculators exited positions in the precious metal tracking weakness overseas as a stronger dollar curbed the lure for silver as an alternative asset.Stronger greenback makes silver more expensive for those holding other currencies thus dimming demand.
- South Korea’s finance minister said the country is planning to oppose all kinds of trade protectionist moves through diplomatic measures, although he did not elaborate what actions Seoul may take.Finance Minister Yoo Il-ho said in an opening speech at a regular government meeting that the global economy faces growing risks from increasing tendencies of trade protectionism, Brexit and the U.S. presidential election campaign.
- With the U.S. Federal Reserve perhaps edging towards a September rate increase, St. Louis Federal Reserve president James Bullard is sticking with his view that a single move is all that is needed for a long time to come, and it does not have to happen anytime soon.Bullard said on Wednesday he did not put much weight on whether the central bank acts in September or even at all this year, given that he now thinks a single hike is all that is needed to maintain unemployment and inflation rates near the Fed’s target levels.
- Federal Reserve policymakers agree that more economic data is needed before raising interest rates, although some see a need to tighten policy soon, according to the minutes from the U.S. central bank’s July 26-27 policy meeting.The minutes, which were released on Wednesday, showed that members of the rate-setting Federal Open Market Committee were generally upbeat about the U.S. economic outlook and labor market.
TRADING STRATEGY :
- BUY GOLD ABOVE 1358 TGT 1363 1368 SL 1353
- SELL GOLD BELOW 1333 TGT 1328 1323 SL 1338