MTECHTIPS COMMODITY MARKET NEWS 2

MTECHTIPS:-Gold bounces back slightly in Asia

Gold futures rose modestly in the early part of Tuesdays Asian session, bouncing back from a small loss incurred during Mondays U.S. session. However, it appears as though the possible end of quantitative easing in the U.S. is still weighing on traders minds.On the Comex Division of the New York Mercantile Exchange, gold futures for February delivery rose 0.24% to USD1,650.25 per troy ounce in Asian trading Tuesday. During Mondays U.S. session gold futures for February delivery were down 0.19% at USD1,645.75 a troy ounce in U.S. trading, up from a session low of USD1,643.25 and down from a high of USD1,662.55 a troy ounce.Gold futures were likely to test support USD1,626.05 a troy ounce, Friday's low, and resistance at USD1,695.35, Wednesday's high.Gold has been under pressure since late last week when the most recent meeting minutes from the Federal Open Market Committee indicated division among Federal Reserve governors regarding when to bring quantitative easing to an end. While the Federal Reserve has been open its intent to leave U.S. interest rates low until the unemployment rate in the worlds largest economy, currently 7.8%, drops below 6.5%, no hard and fast date for the end of monetary easing has been discussed.The Federal Reserve is currently purchasing USD40 billion in mortgage-backed securities and USD45 billion in Treasuries per month in an effort to stimulate economic growth.

MTECHTIPS:-Oil down modestly, but budget debate looms

Oil futures slipped modestly in the early part of Tuesdays Asian session after posting a small gain during Mondays U.S. session. Concerns about the possible end of quantitative easing and a looming debt ceiling debate could be weighing on traders minds.On the New York Mercantile Exchange, light, sweet crude futures for February delivery fell 0.03% to USD93.17 per barrel in Asian trading Tuesday. During the U.S. session, crude rose to USD93.22 a barrel on Monday, up 0.14%, off from a session high of USD93.30 and up from an earlier session low of USD92.45.Oil futures could be in focus in the coming weeks as U.S. policymakers inch toward another significant fiscal debate: The debt ceiling. The debt ceiling is the amount of debt the U.S. can carry at any one time and the last time the debate was in focus in 2011, riskier assets, including equities and oil, were punished as political wrangling spooked financial markets.During the last debt ceiling fiasco, Standard & Poors stripped the U.S. of the prestigious AAA credit rating. In recent weeks, traders have speculated that another credit downgrade could be in the offing for the U.S. if politicians do not move swiftly to raise the debt ceiling. The U.S. currently has a credit rating of AA+ from Standard & Poors.Republican lawmakers have already signaled that they will be firm in their desire to force President Obama to reduce government spending, which is the reason the debt ceiling must be addressed in the first place.

MTECHTIPS:-India Coriander futures to remain bullish on poor supply, export demand

India's Coriander futures (Dhaniya) are showing bullish trend on poor arrivals, fall in the acreage and good export demand. Coriander prices may remain high for long term as far as present market conditions are concerned.Right now, lower temperature in major coriander seed growing areas is a major concern for coriander growers as the lower temperature harms the flowering of coriander crop.Coriander sown area has significantly declined from 25 to 30 percent against last year's total sown area. Sowing got late as a result of late harvesting of kharif coriander crop.On the spot market, around 240 tons of coriander seed arrived at Baran and Ramganj Mandi in Rajasthan on Satuarday. Prices were ruled between

Rs. 5600 to 5800 per 100 kg .Coriander futures on India's National Commodity and Derivatives Exchange (NCDEX) were down by 4.01 percent for April contract, at Rs. 6720 per 100 kg as of 14.19 IST on Monday.

MTECHTIPS:-Crude Oil markets to seek direction from China, US corporate data

With the US corporate earnings season about to unfold starting Tuesday as well as Chinese export-import data release for December scheduled two days from here on Thursday, crude oil futures may be in for a wait-and-watch mode.Investors will want to see that were getting the numbers during earnings season to suggest that the recovery in the U.S. is sustained, said Jonathan Barratt, the chief executive officer of Barratts Bulletin to Bloomberg News.Weve got data due out this week fromChina and I think that will be a key as to whether or not we bust through $95. he added.Brent crude oil for delivery on February 13 was seen trading at $111.42 a barrel, a loss of $0.10 or 0.09%. WTI crude oil for delivery on the same date was seen trading at $93.15, a loss of $0.04 or 0.04% as of 09.56 AM IST.

MTECHTIPS:-Cursed to a narrow range, volatility awaits Gold, Silver prices

We understand the times are weird when the safe haven asset gold starts to behave like silver. Gold is following silver in volatility... acknowledges.Both commodities are facing stiff resistances as they try to move higher:Gold is having resistance at $1670 and silver at $30 and a few cents. On India's MCX, this translates into a resistance of Rs.31100-150 for gold and Rs.58500 for silver. Manoj Kumar Jain said.The currency markets are supposed to play a strong role when it comes to gold, silver movements.We may not expect a repo rate cut as inflation rate is still on the rise. If a rate hike revision happens, then it would possibly fall short of expectations. he added.Weak dollar or strong rupee may help with price appreciation in gold. But currently the rupee factor is not favorably inclined towards gold.

MTECHTIPS:-MCX Gold, Silver expected to be range-bound for Tuesday

MCX Gold, silver prices are expected to be range-bound for the day as no major economic data releases are scheduled for the evening.MCX gold for delivery on February is having a crucial support at Rs 30800 and resistance at Rs 31010 even as silver for delivery on March may find support at Rs 57700 and resistance at Rs 58500.I expect gold and silver futures to trade in the aforesaid range and if bullion prices close to any of the sides would give the clear direction for the remaining trading session of the week.Meanwhile the debt-ceiling debate is raging in US depsite Obama ruling out any negotiations in this regard. While there are arguments that the President should be invoking the 14 th amendment and raise the debt ceiling voluntarily, this has already been ruled out by the White House.

MTECHTIPS:-MCX Crude Oil: Bull run expected on close above Rs 5200 on daily basis
India's MCX crude oil is likely to remain upbeat with strong support at Rs.5130. Resistance is likely to be above Rs.5200. Crude oil prices may resume upswing towards Rs.5300 if

prices successfully close above Rs 5200 on a daily basis.With the US corporate earnings season about to unfold starting Tuesday as well as Chinese export-import data release for December scheduled two days from here on Thursday, crude oil futures may be in for a wait-and-watch mode.Investors will want to see that were getting the numbers during earnings season to suggest that the recovery in the U.S. is sustained, said Jonathan Barratt, the chief executive officer of Barratts Bulletin to Bloomberg News.Weve got data due out this week from China and I think that will be a key as to whether or not we bust through $95. he added.MCX crude oil settled modestly higher in the previous week and kept trading above 3-months high following fresh buying by traders.

MTECHTIPS:-Profit booking may mark Turmeric futures; trend positive

India turmeric futures are showing positive trend on increased domestic demand, active demand from bulk buyers on spot markets and on export queries.Fresh orders have been entering the spot market mainly from North India and the orders are expected to keep turmeric prices firm on both spot and futures market.Turmeric trend is positive, support seen at Rs.6612 while Rs.6950 is the resistance and profit booking is expected. Over all view is buy on every dips, said Milan Shah, Research Analyst at Commodity Online reacting to the turmeric trend on NCDEX.On the futures market volumes and open interest have significantly climbed on firm turmeric prices.According to derivative analysis, prices, volumes and open interest all have increased. It is an indication that market is attracting large numbers of traders, who are willing to open positions from the long side and hold them stated Karvy Commodities in a research note.Turmeric futures for April delivery on India's National Commodity and Derivatives (NCDEX) were slightly up by 0.49 percent at Rs. 6860 per 100 kg as of 12.00 PM IST on Tuesday.