MTECHTIPS COMMODITY MARKET NEWS 2

MTECHTIPS:-Gold falls in Asia following encouraging U.S. data points

Gold futures started the new week modestly lower as the yellow metals safe have status might be seen as unappealing in a risk-on environment that has arguably been bolstered by U.S. economic reports released last week.On the Comex division of the New York Mercantile Exchange, gold futures for April delivery dropped 0.06% to USD1,669.55 per troy ounce in Asian trading Monday. Gold prices were likely to find support at USD1,653.35 a troy ounce, the low from January 28 and near-term resistance at USD1,694.75, the high from January 23.Futures rose last Fridays U.S. session after the the Labor Department said the worlds largest economy added 157,000 new jobs in January, below economists expectations calling for 160,000 new jobs. The unemployment rate rose to 7.9% from 7.8%. Still, riskier assets moved higher after the November and December jobs numbers were revised noticeably higher and a couple of other decent data points were absorbed by market participants.In other U.S. economic news, University of Michigan-Thomson Reuters consumer sentiment survey rose to a January reading of 73.8, up from 72.9 in December. Economists expected a January reading of 71.5.

MTECHTIPS:-Oil lower following eight consecutive winning weeks

Oil futures traded slightly to start the week in Asia as traders are perhaps taking profits after crude booked its eighth consecutive week of gains last week on the back of some encouraging U.S. economic data points.On the New York Mercantile Exchange, light, sweet crude futures for March delivery fell 0.21% to USD97.56 per barrel. Last week, oil futures rose 1.6%, the eighth consecutive weekly gain. The impressive win streak marks the longest run of weekly gains since August 2004.Crude was boosted after the the Labor Department said the worlds largest economy added 157,000 new jobs in January, below economists expectations calling for 160,000 new jobs. The unemployment rate rose to 7.9% from 7.8%.Still, riskier assets moved higher after the November and December jobs numbers were revised noticeably higher and a couple of other decent data points were absorbed by market participants. In other U.S. economic news, University of MichiganThomson Reuters consumer sentiment survey rose to a January reading of 73.8, up from 72.9 in December. Economists expected a January reading of 71.5.

MTECHTIPS:-Stronger $10,000/ton

China

growth

may

push

Copper

above

According to a liner regression model employed by Barclays, provided that China GDP grows at 9% in 2013, the average copper cash price in 2013 could rise to over $9,600/ton with an exponential peak of $10,300/ton in Q3 2013.The average price of $9,600/ton is up by 18% y/y and 21% from Barclays base case.Less than six months ago, commodity investors, producers and consumers were still concerned about a hard landing in China.However, China's GDP growth rebounded in Q4 12 to 7.8% y/y and we expect this momentum to extend into 2013. The spotlight is now shifting to the potential upside to Chinese growth. the report observed.Economic stabilisation, a ramp-up in infrastructure spending and a boost to domestic consumption could be upside catalysts after the 12th National Peoples Congress in March 2013.

MTECHTIPS:-Positive economic data keeps Crude Oil futures steady

With signals of economic recovery hitting the shores, crude oil prices were almost steady on the NYMEX as well as on ICE Futures.US economy added 157000 jobs in January, even as Chinese services PMI climbed at the fastest pace in the same month. Dollar was trading near the lowest level since November 2011 against Euro which added to the appeal of commodities.Theres been an unbroken sequence of decent economic news in recent times, and China services PMI and the employment figures were no exception, said Ric Spooner, a chief market analyst at CMC Markets in Sydney to Bloomberg.That, together with some weakness in the U.S. dollar, is generally helping to support the oil market. he added.NYMEX WTI crude oil for delivery on March 13 was spotted trading at $97.56 a barrel, a loss of $0.20 or 0.21% as of 09.59 AM IST. Brent crude oil for delivery on the same date was seen trading at $116.53 a a barrel, a gain of $0.01 or 0.01% as of 10.01 AM IST.Meanwhile Syria's President Bashar al-Assad accused Israel of trying to "destabilise" Syria, the first of the possible volleys that may be fired between Syria and Israel; reports suggested that Israel fighter jets attacked Syrian targets last week.

MTECHTIPS:-Gold Bank of India: Idea whose time has come?

The upcoming budget session may see a proposal to set up a gold bank under Reserve Bank of India, India's central bank, a report that has been published in the South Indian daily, Malayala Manorama speculated. The proposal can be traced back to the 1992 budget presented in the Parliament, but which eventually gathered dust.The said proposal wanted a corporation or bank to take care of policy affairs in gold.Now, with India trying out all the weapons in its arsenal to curb gold imports, including hiking of import duty by 2% to 6%, the idea of gold bank of India could well have found its resonance in time.The report mentioned pre-budget talks gaining pace in this regard.The dream Gold Bank of India would take care of transactions in gold and would look after the allied affairs. The bank may purchase gold for its own needs as well as for others, issue bonds against gold deposits and may even take measures to augment national reserves of gold.The bank would also deal with export and import of gold, may issue gold as loan, involve in transactions of gold and may even oversee futures in gold.