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Mtechtips Commodity Market News 1

Mtechtips Commodity Market News 1

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Published by MtechTips
MTECHTIPS COMMODITY MARKET NEWS 1
MTECHTIPS:-Dollar, oil slip as US shutdown drags on, gold up
The dollar, oil prices and US stock futures eased on Monday as politicians in Washington showed no signs of making progress to resolve the US budget standoff, while safe-haven gold inched higher. Democrats and Republicans remained far apart on ending the government shutdown, let alone reaching a deal on the US borrowing limit by October 17 to avoid an unprecedented default. Republican House Speaker John Boehner vowed not to raise the debt ceiling without a "serious conversation" about what is driving the debt, while Democrats said it was irresponsible and reckless to raise the possibility of a default.The comments appeared to mark a hardening stance since late last week when Boehner was reported to have told Republicans privately that he would work to avoid default, even if it meant relying on the votes of Democrats, as he did in August 2011. The .S Standard & Poor's 500 e-mini futures shed 0.5 percent in Asian trade on Monday. The S&P 500 index ended down 0.1 percent last week. US Treasury futures rose 6 basis points. Selling in risky assets has been orderly so far, but investors see volatility rising if the shutdown continues as the Oct 17 deadline gets closer. "As the days tick by and the US government's cash gradually starts to run out, the stakes will rise considerably," analysts at ANZ said in a note. For now, Asian shares were holding up. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1 percent, though its 12-month forward price-to-earnings ratio stood at 11.8, below a 10-year average of 12.4, according to Thomson Reuters DataStream.

MTECHTIPS:-Gold bulls may face austere Indian festive season
last week's two percent decline in spot gold prices is not discouraging gold bulls who're turning their sights on Asian demand, which they say remains resilient and is set to strengthen on seasonal buying from India. However, softer economic growth from Asia's third-largest economy, a depreciating Indian rupee and limits placed on gold imports aimed at reducing US dollar outflows in a bid to improve the trade gap and narrow the current account deficit may mean the tone of celebrations and gold purchases from the world's biggest gold consumer are a little less extravagant this season. "Indian wedding season demand will support the trade but it is likely to be much more subdued in terms of price impact this year," said Victor Thianpriya, Commodity Strategist at ANZ Research in Singapore. "Import restrictions remain in place and dealers are likely to source more from the scrap market."India will celebrate the Hindu festivals of Dussehra in the third week of October and Diwali in the first week of November, a period when buying gold is considered auspicious. The traditional wedding season in the autumn is also a key time for gold purchases. US gold futures for December delivery settled at USD 1,309.90 on Friday, down USD 7.70 an ounce, or 0.6 percent. The market notched a loss of over 2 percent on the week. Sentiment is evenly split in CNBC's latest poll of gold market sentiment with 40 percent, or 6 out of 15 respondents, forecasting prices will fall this week and an equal number predicting price gains. Three respondents, or 20 percent, are 'neutral' and expect prices to trade around current levels.


MTECHTIPS:-Brent slips towards $109 as storm wanes, demand woes linger
Brent futures edged down towards $109 a barrel on Monday as oil production resumed in the Gulf of Mexico after a tropical storm, while lingering concerns over the US government shutdown clouded the outlook for demand. Tropical Storm Karen had prompted producers to shut in nearly two-thirds of oil output in the Gulf of Mexico. But it was downgraded to a tropical depression late on Saturday, with production starting to return to normal by the end of the weekend. Brent crude had eased 33 cents to USD 109.11 a barrel by 0255 GMT, after settling
MTECHTIPS COMMODITY MARKET NEWS 1
MTECHTIPS:-Dollar, oil slip as US shutdown drags on, gold up
The dollar, oil prices and US stock futures eased on Monday as politicians in Washington showed no signs of making progress to resolve the US budget standoff, while safe-haven gold inched higher. Democrats and Republicans remained far apart on ending the government shutdown, let alone reaching a deal on the US borrowing limit by October 17 to avoid an unprecedented default. Republican House Speaker John Boehner vowed not to raise the debt ceiling without a "serious conversation" about what is driving the debt, while Democrats said it was irresponsible and reckless to raise the possibility of a default.The comments appeared to mark a hardening stance since late last week when Boehner was reported to have told Republicans privately that he would work to avoid default, even if it meant relying on the votes of Democrats, as he did in August 2011. The .S Standard & Poor's 500 e-mini futures shed 0.5 percent in Asian trade on Monday. The S&P 500 index ended down 0.1 percent last week. US Treasury futures rose 6 basis points. Selling in risky assets has been orderly so far, but investors see volatility rising if the shutdown continues as the Oct 17 deadline gets closer. "As the days tick by and the US government's cash gradually starts to run out, the stakes will rise considerably," analysts at ANZ said in a note. For now, Asian shares were holding up. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1 percent, though its 12-month forward price-to-earnings ratio stood at 11.8, below a 10-year average of 12.4, according to Thomson Reuters DataStream.

MTECHTIPS:-Gold bulls may face austere Indian festive season
last week's two percent decline in spot gold prices is not discouraging gold bulls who're turning their sights on Asian demand, which they say remains resilient and is set to strengthen on seasonal buying from India. However, softer economic growth from Asia's third-largest economy, a depreciating Indian rupee and limits placed on gold imports aimed at reducing US dollar outflows in a bid to improve the trade gap and narrow the current account deficit may mean the tone of celebrations and gold purchases from the world's biggest gold consumer are a little less extravagant this season. "Indian wedding season demand will support the trade but it is likely to be much more subdued in terms of price impact this year," said Victor Thianpriya, Commodity Strategist at ANZ Research in Singapore. "Import restrictions remain in place and dealers are likely to source more from the scrap market."India will celebrate the Hindu festivals of Dussehra in the third week of October and Diwali in the first week of November, a period when buying gold is considered auspicious. The traditional wedding season in the autumn is also a key time for gold purchases. US gold futures for December delivery settled at USD 1,309.90 on Friday, down USD 7.70 an ounce, or 0.6 percent. The market notched a loss of over 2 percent on the week. Sentiment is evenly split in CNBC's latest poll of gold market sentiment with 40 percent, or 6 out of 15 respondents, forecasting prices will fall this week and an equal number predicting price gains. Three respondents, or 20 percent, are 'neutral' and expect prices to trade around current levels.


MTECHTIPS:-Brent slips towards $109 as storm wanes, demand woes linger
Brent futures edged down towards $109 a barrel on Monday as oil production resumed in the Gulf of Mexico after a tropical storm, while lingering concerns over the US government shutdown clouded the outlook for demand. Tropical Storm Karen had prompted producers to shut in nearly two-thirds of oil output in the Gulf of Mexico. But it was downgraded to a tropical depression late on Saturday, with production starting to return to normal by the end of the weekend. Brent crude had eased 33 cents to USD 109.11 a barrel by 0255 GMT, after settling

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MTECHTIPS COMMODITY MARKET NEWS 1
MTECHTIPS:-Dollar, oil slip as US shutdown drags on, gold upThe dollar, oil prices and US stock futures eased on Monday as politicians inWashington showed no signs of making progress to resolve the US budgetstandoff, while safe-haven gold inched higher. Democrats and Republicansremained far apart on ending the government shutdown, let alone reaching adeal on the US borrowing limit by October 17 to avoid an unprecedenteddefault. Republican House Speaker John Boehner vowed not to raise the debtceiling without a "serious conversation" about what is driving the debt, whileDemocrats said it was irresponsible and reckless to raise the possibility of adefault.The comments appeared to mark a hardening stance since late lastweek when Boehner was reported to have told Republicans privately that hewould work to avoid default, even if it meant relying on the votes of Democrats,as he did in August 2011. The .S Standard & Poor's 500 e-mini futures shed 0.5percent in Asian trade on Monday. The S&P 500 index ended down 0.1 percentlast week. US Treasury futures rose 6 basis points. Selling in risky assets hasbeen orderly so far, but investors see volatility rising if the shutdown continuesas the Oct 17 deadline gets closer. "As the days tick by and the US government'scash gradually starts to run out, the stakes will rise considerably," analysts atANZ said in a note. For now, Asian shares were holding up. MSCI's broadestindex of Asia-Pacific shares outside Japan edged up 0.1 percent, though its 12-month forward price-to-earnings ratio stood at 11.8, below a 10-year average of 12.4, according to Thomson Reuters DataStream.MTECHTIPS:-Gold bulls may face austere Indian festive seasonlast week's two percent decline in spot gold prices is not discouraging gold bullswho're turning their sights on Asian demand, which they say remains resilientand is set to strengthen on seasonal buying from India. However, softereconomic growth from Asia's third-largest economy, a depreciating Indian rupee
 
and limits placed on gold imports aimed at reducing US dollar outflows in a bidto improve the trade gap and narrow the current account deficit may mean thetone of celebrations and gold purchases from the world's biggest gold consumerare a little less extravagant this season. "Indian wedding season demand willsupport the trade but it is likely to be much more subdued in terms of priceimpact this year," said Victor Thianpriya, Commodity Strategist at ANZ Researchin Singapore. "Import restrictions remain in place and dealers are likely tosource more from the scrap market."India will celebrate the Hindu festivals of Dussehra in the third week of October and Diwali in the first week of November,a period when buying gold is considered auspicious. The traditional weddingseason in the autumn is also a key time for gold purchases. US gold futures forDecember delivery settled at USD 1,309.90 on Friday, down USD 7.70 an ounce,or 0.6 percent. The market notched a loss of over 2 percent on the week.Sentiment is evenly split in CNBC's latest poll of gold market sentiment with 40percent, or 6 out of 15 respondents, forecasting prices will fall this week and anequal number predicting price gains. Three respondents, or 20 percent, are'neutral' and expect prices to trade around current levels.MTECHTIPS:-Brent slips towards $109 as storm wanes, demand woes lingerBrent futures edged down towards $109 a barrel on Monday as oil productionresumed in the Gulf of Mexico after a tropical storm, while lingering concernsover the US government shutdown clouded the outlook for demand. TropicalStorm Karen had prompted producers to shut in nearly two-thirds of oil outputin the Gulf of Mexico. But it was downgraded to a tropical depression late onSaturday, with production starting to return to normal by the end of theweekend. Brent crude had eased 33 cents to USD 109.11 a barrel by 0255 GMT,after settling higher in the previous three sessions and gaining 0.8 percent lastweek to end a three-week losing run. US crude traded 50 cents lower at $103.34a barrel, after ending last week up 0.9 percent. "There are no bullish or bearishfactors to drive the market in either direction until we hear significant news out
 
of the United States," said Yusuke Seta, a commodity sales manager atNewedge in Tokyo. "Most oil traders are lost in the market. They are justwaiting and see how the oil market will react." He was referring to the nearlyweek-long US budget impasse and mounting concern it could undermine movesto increase the country's borrowing limit by an October 17 deadline, raising thepossibility of a sovereign bond default.Republican House Speaker John Boehnervowed on Sunday not to raise the US debt ceiling without a "seriousconversation" about what is driving the debt, while Democrats said it wasirresponsible and reckless to raise the possibility of a U.S. default. "We stillbelieve the U.S. congress will come to an agreement before October 17," saidSeta. Brent prices are unlikely to slip below $107.50 a barrel or above $112 abarrel, according to Newedge. A weakening greenback helped limit losses as itmakes it cheaper for importers to buy dollar-priced oil using their own currency.The dollar eased 0.1 percent against a basket of major currencies, within strikingdistance of an eight-month trough hit last week. Liquidity may return to Asiafrom Tuesday when Chinese markets reopen after a week-long holiday,although there's no major data ahead until the weekend when China publishestrade numbers.MTECHTIPS:-Gold edges up as US shutdown drags on, debt limit loomsGold nudged up in Asian trading on Monday as the near-week long USgovernment shutdown raised fears Congress may struggle to raise the debtceiling in time, burnishing bullion's safe-haven appeal. Failure to raise the USborrowing limit by October 17 will push the world's biggest economy into anunprecedented debt default. Congress is already divided on a spending bill,resulting in a partial government shutdown that is hurting the economy anddelaying key data releases. During the last debate over the US debt ceiling in2011, gold hit an all-time high of USD 1,920 an ounce. An agreement wasreached by Congress only at the last minute. "These are critical events that canmove the markets greatly," said Brian Lan, managing director of GoldSilverCentral Pte Ltd in Singapore. "If we don't see any progress till the 17th, I think

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