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MTECHTIPS COMMODITY MARKET NEWS 2

MTECHTIPS:-Gold drops amid profit-taking as euro-fueled rally cools
Gold prices softened amid profit-taking in Asian trading on Tuesday, wiping out earlier gains stemming from hopes crisis-weary Greece and Spain may be finding their ways out of the European debt crisis.On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were down 0.37% at USD1,714.65 a troy ounce, up from a session low of USD1,714.45 and down from a high of USD1,719.25 a troy ounce.Gold futures were likely to test support at USD1,710.45 a troy ounce, Friday's low, and resistance at USD1,733.65, Friday's high.Gold rose in earlier sessions, buoyed by hopes Greece and Spain will navigate themselves out of the debt crisis.Greece earlier announced it would buy back EUR10 billion in government debt, a requirement for Athens to tap bailout packages totaling EUR44 billion.Spain, meanwhile, officially submitted a request for EUR37 billion in aid to prop up its banking sector, which has already won E.U. approval.Events in both Greece and Spain fueled hopes the European debt crisis may be easing up a bit, which sent the euro gaining and the dollar falling earlier, a recipe for climbing gold prices.Lackluster European and U.S. factory data, however, eventually sent investors returning to the safety of the U.S. dollar, which trades inversely from gold. A final eurozone manufacturing purchasing managers’ index remained unchanged at 46.2 in November, the highest level since March, though still stuck in contraction territory for the 16th consecutive month.

MTECHTIPS:-Crude dips on soft U.S., European manufacturing data
Crude oil futures softened in Asian trading on Tuesday after manufacturing reports disappointed in the U.S. and failed to inspire in Europe.On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD88.96 a barrel on Tuesday, down 0.15%, off from a session high of USD89.08 and up from an earlier session low of USD88.86.Soft factory data in the U.S. and in Europe sent oil prices falling after making earlier gains depicting an improving economy in China.A final eurozone manufacturing purchasing managers’ index remained unchanged at 46.2 in November, the highest level since March though still stuck in contraction territory for the 16th consecutive month. Meanwhile in the U.S., manufacturing activity weakened unexpectedly in November, shrinking for the first time in three months.In a report, the Institute for Supply Management revealed that its index of purchasing managers fell to 49.5 in November from 51.7 in October.Analysts had expected the ISM index of purchasing managers to decline to only 51.3 in November.The numbers disappointed investors after similar data out of China fueled hopes the global economy may be turning a corner and headed for more robust growth.

MTECHTIPS:-US manufacturing slump hits the Crude Oil bull's eye
The news of manufacturing sector contraction in US was not lost on the crude oil markets with the markets trading in red.Economic activity in the manufacturing sector in US contracted in November following two months of modest expansion, while the overall economy grew for the 42nd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business. The PMI registered 49.5 percent, a decrease of 2.2 percentage points from October's reading of 51.7 percent, indicating contraction in manufacturing for the fourth time in the last six months.Crude oil futures on the NYMEX for January delivery was seen trading at $88.82 a barrel, a loss of 0.3% even as its trans-Atlantic counterpart, Brent, dropped by 0.19% and was seen trading at $110.61 as on 10.19 am IST.Meanwhile, on India's MCX, crude oil for December delivery was a tad up and was seen trading at Rs.4885 a gain of 0.14%.This month's ISM PMI reading reflects the lowest level since July 2009 when the PMI registered 49.2 percent. The New Orders Index registered 50.3 percent, a decrease of 3.9 percentage points from October, indicating growth in new orders for the third consecutive month.

MTECHTIPS:-Gold prices would go off the cliff and yet float on QE 4 wings
The US fiscal cliff issue is something of a political drama. It is, strictly speaking, a showdown of egos between the democrats and the republicans.; the latter having lost the presidency want to hide the exasperation and the former, having retained the presidency want to binge on it.This equation has got a great deal to do with gold prices. If US goes off the cliff, then gold prices would reach stratospheric levels, if it does not make it off the cliff, then the continuing Eurozone issue and the possible QE4 would lent the commodity some support.Bart Melek, head of commodity strategy for TD Securities said to Kitco, “We fully expect the expiring Operation Twist program will be replaced with an unsterilized longerterm bond purchase program, which we think will be very conducive to higher gold prices.”Yes, the Operation Twist program is coming to an end and given the grim labour market scenario may see US continuing with printing of money. The ISM's latest Employment Index registered 48.4 percent, a decrease of 3.7 percentage points, which is the index's lowest reading since September 2009.Since Ben Bernanke has tethered QE initiatives to a rebound in the economy as reflected by the job markets, the QE 4 cannot be much far from here.

MTECHTIPS:-India Coriander to go bullish on lower production
Coriander prices in India are expected to move up for short term as sowing declines in major coriander seed growing areas of Rajasthan and Madhya Pradesh. Poor production estimates in the domestic market along with strong export demand in the current year expected to push up coriander seed prices in India.The area covered under coriander in Madhya Pradesh and Rajasthan is estimated to be lower by around 30-40 percent than last year.The spot prices were trading in the range of Rs. 4200-4300 per 100 kilogram at major mandies.Coriander futures on India's National Commodity & Derivatives Exchange (NCDEX) were slightly up by 1.43 percent at Rs.5245 per 100 kilogram for January contract as of 11.34 IST on December,4.“Over all trend is looking positive. Support seen near 4873 while 5330 is the resistance for the same. Trading above 5330 likely to touch 5540 level,” says Milan Shah, Agri Research Manager at Commodity Online - reacting to the trend on NCDEX.