INTERNATIONAL COMMODITY NEWS :
- Gold prices were trading flat on Wednesday with investors keyed to Federal Reserve remarks ahead. Investors also await a wave of public comments from key Federal Reserve policymakers including Yellen on Thursday for further signals on the pace of the Fed’s current tightening cycle.
- Crude oil prices rose by 3.19 per cent on Wednesday after a bullish US industry group inventory estimate showed a sharp drop in stocks and an upbeat services PMI from China. The American Petroleum Institute said crude oil stock fell 4.3 million barrels at the end of last week while distillates stocks rose 2.7 million barrels and gasoline stock fell 116000 barrels.
- Natural Gas futures fell by 3 per cent in the domestic market on Tuesday reversing Monday’s rally which was driven by hopes that a surprise cold snap may bolster the demand for the heating fuel in the US the world’s biggest gas consumer.Traders were cautious ahead of the weekly US supplies data which may offer a further insight into the state of demand for the energy commodity in the US.
ECONOMY NEWS :
- China’s exports likely returned to growth for the first time in nine months in March while the pace of bank lending may have picked up, adding to signs that the world’s second-largest economy may be stabilizing. Chinese leaders have pledged to make monetary policy more flexible this year even as it leans more on increased fiscal spending and tax cuts to support economic growth and cushion the pain from structural reforms.
- Conditions are in place for the Indian economy to start growing faster in the next few quarters as banks pass on its rate cuts to their borrowers, Reserve Bank of India Governor Raghuram Rajan told Bloomberg TV in an interview on Wednesday.Still, Rajan left open the prospect for more easing should inflation conditions allow it, though he added that inflation in services, education and health care had not yet eased “dramatically.”
- A top Australian central banker on Wednesday reiterated that a wide range of information suggested inflation was likely to remain low over the next couple of years, in part due to spare capacity globally. The comments underline the message from the Reserve Bank of Australia’s (RBA) April policy meeting that the country’s low inflation would provide scope for a further cut in interest rates if needed to support the economy.
TRADING STRATEGY :
- BUY GOLD ABOVE 1228 TARGET 1233 1239 SL 1223
- SELL GOLD BELOW 1223 TARGET 1218 1212 SL 1228