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MTECHTIPS COMMODITY MARKET NEWS 2

MTECHTIPS:-Gold rises in Asia as fiscal cliff talks stall
After sliding in Wednesday’s U.S. session, gold futures rose in Thursday’s Asian session on news that negotiations between the two major U.S. political parties to avert the fiscal cliff have stalled.On the Comex division of the New York Mercantile Exchange, gold futures for February delivery added 0.13% to USD1,669.95 per troy ounce in Asian trading Thursday. The yellow metal traded as high as USD1,670.65 per ounce and as low as low as USD1,666.15.During the U.S. session, gold settled down 0.09% at USD1,669.25 a troy ounce. Gold futures were likely to test support USD1,662.35 a troy ounce, Tuesday's low, and resistance at USD1,704.35, Tuesday's high.The rise in Asian trading Thursday, albeit modest, could indicate that gold’s safe haven status is being restored somewhat as traders fret about the suddenly sour tone to the U.S. fiscal cliff negotiations. Through the early part of the week, riskier assets rose, buoyed by hopes policymakers in the world’s largest economy were making progress toward averting the GDP-draining fiscal cliff.Those talks took a noticeable turn for the worse during Wednesday’s U.S. session when President Obama accused his Republican opponents of making the cliff debate personal. Republicans fired back, saying the President’s opposition to House Speaker John Boehner’s so-called Plan B is "bizarre and irrational."

MTECHTIPS:-Oil declines as cliff negotiations turn sour
Crude oil futures fell during Thursday’s Asian session after posting an impressive gain during Wednesday’s U.S. session as traders digested news that U.S. budget talks had taken a sudden turn for the worse.On the New York Mercantile Exchange, light sweet crude futures for February delivery fell 0.44% to USD89.58 per barrel. During Wednesday’s U.S. session, crude settled at USD90.04 a barrel, up 1.86%.Earlier in the day, the U.S. Energy Information Administration said U.S. oil inventories slipped by 964,000 barrels to 371.7 million barrels in the week to Dec. 14., while gasoline stocks rose by 2.2 million barrels to 219.32 million barrels.Traders focused more on the inventory then some housing data released in the U.S. Wednesday. The Commerce Department said new home construction fell 3% last month to a seasonally adjusted rate of 861,000 units. Economists expected a reading of 865,000 units. The October number was revised down to 888,000 from an initial reading of 894,000.Oil also got a lift from news that OPEC member Iran will continue its uranium enrichment program despite requests from the West to cease the program. Israel has threatened airstrikes against Iran if the latter proceeds with its nuclear goals.

MTECHTIPS:-Gold futures edge higher with fiscal cliff talks in focus
Gold futures edged higher during European morning trade on Thursday, holding above a key technical support level, as investors continued to monitor negotiations among U.S. lawmakers to avoid the looming “fiscal cliff” crisis.On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,671.55 a troy ounce during European morning trade, up 0.25% on the day.Prices held in a tight trading range between USD1,666.15 a troy ounce, the daily low and a session high of USD1,672.45 a troy ounce. Gold futures fell to USD1,662.35 a troy ounce on Tuesday, the lowest level since August 31.Gold prices were likely to find short-term support at USD1,662.35 a troy ounce, Tuesday’s low and resistance at USD1,700.45, the high from December 17.Market players continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the two weeks left before the deadline.Doubts over whether a deal will be reached ahead of the yearend deadline intensified Wednesday after a spokesman for President Barack Obama said that the White House would veto a tax and spending proposal presented by House Speaker John Boehner.

MTECHTIPS:-Crude oil futures ease off 2-month high as U.S. budget talks stall
Crude oil futures eased off the previous session’s two-month high during European morning hours on Thursday, as a lack of progress in negotiations for a deal to avoid a U.S. budget crisis before a January deadline weighed on appetite for riskier assets.On the New York Mercantile Exchange, light sweet crude futures for delivery in February traded at USD89.58 a barrel during European morning trade, down 0.45% on the day.New York-traded oil prices fell by as much as 0.65% earlier in the day to trade at a session low of USD89.42 a barrel.Oil futures rallied 1.8% on Wednesday to hit USD90.32 a barrel, the strongest level since October 22, after a U.S. government report showed a jump in demand for diesel and heating oil.Investors were hesitant to extend the rally amid uncertainty over the looming U.S. fiscal cliff, approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the two weeks left before the deadline.Doubts over whether a deal will be reached ahead of the year-end intensified Wednesday after a spokesman for President Barack Obama said that the White House would veto a tax and spending proposal presented by House Speaker John Boehner.Without a deal, the U.S. could fall back into recession and drag much of the world down with it.

MTECHTIPS :-Pricing, marketing policies hit India's Nat Gas growth: FICCI-PWC report
The natural gas sector growth of India has been constrained by curbs imposed by pricing and marketing policies of the government, according to a FICCI-PWC report .Absence of market-determined pricing mechanism is also a great constraint in the growth of natural gas sector.The government not just fixes the price of domestically produced gas but also determines who it should be sold to, the report titled 'Rising above the sub-optimal Exploring ways to find energy solutions' added.Gas produced from some of the blocks has been allowed to be sold at slightly higher rate while PSUs and Reliance Industries BSE -0.15 % produced gas is priced at USD 4.2 per million metric British thermal units (mmbtu) which will cause a sense of uncertainty in investors' minds."The government has not been able to attract investors in the exploration and production sector due to uncertainties in areas of pricing and allocation of hydrocarbon resources, complexity in granting of approvals and various clearances, interpretation of the terms of the production sharing contracts (PSCs) and other framework agreements," says the report.