MTECHTIPS COMMODITY MARKET NEWS 1

MTECHTIPS:-Crude holds steady on firming U.S. consumer sentiment

Crude oil futures held steady in Asian trading on Monday through slightly off gains posted after consumer sentiment data beat expectations in the U.S., hitting a five-year high.On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD86.50 a barrel on Monday, down 0.06%, off from a session high of USD86.58 and up from an earlier session low of USD86.39.The Thomson Reuters/University of Michigan preliminary consumer sentiment index hit 84.9 for November, a five-year high and up from 82.6 in October. The number beat a median forecast of 83.0. The news, which broke on Friday, sent oil prices gaining initially on expectations that the U.S. economy is strengthening and will demand more fuels and energy going forward.Profittaking kicked in later in the Friday's U.S. session, which carried over into Asian trading on Monday.Prices weren't set to fall too far.

MTECHTIPS:-Gold gains as fiscal cliff woes build in U.S.

Gold prices rose on safe-haven demand early Monday as investors stocked up to see if the U.S. can avoid a one-two punch of tax hikes and spending cuts set to strike the economy at the same time next year On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.14% at USD1,733.35 a troy ounce, up from a session low of USD1,732.55 and down from a high of USD1,735.95 a troy ounce.Gold futures were likely to test support at USD1,727.05 a troy ounce, Friday's low, and resistance at USD1,738.75, Friday's high.At the end of this year, the Bush-era tax cuts and other tax benefits expire at the same time pre-programmed cuts to government spending are scheduled to take effect, a combination known as a fiscal cliff that could send the country into recession if left unaddressed by Congress.Failure to address the cliff could spell disaster for U.S. markets, which sparked safe-haven demand for gold considering the economy is set to careen over the fiscal cliff in less than two months.Lawmakers have said they will avert disaster, but uncertainty alone has many investors on edge in that even if policymakers do steer the country away from the cliff, business owners still don't know what a compromise will mean for their taxes next year.Gold also continued to see support stemming from President Barack Obama's reelection.

MTECHTIPS:-China trade data fails to fire Crude Oil futures as Japan shrinks
With the Japanese contraction of the economy taking toll on investor sentiments, the positive trade data from China failed to lend an upside to crude oil markets.Even as China's exports increased at the fastest pace in five months in October, crude oil prices pared the gains as Japan said its economy shrank last quarter: its export sales tumbled and consumer spending dipped.As of 10.19 am IST, crude oil futures on the NYMEX for January delivery climbed to $86.74, a gain of 0.10% or 0.09 Dollars. Brent futures on Europe's ICE Exchange for the same month climbed by 0.14% and was at $108.53 as of 10.31 am IST On the MCX, crude oil for November delivery climbed 0.02% and was seen trading at Rs.4713 a barrel.Chinas export news was encouraging, said Ric Spooner, a chief market analyst at CMC Markets in Sydney said to Bloomberg. Theres a consensus view that growth seems to be bottoming out and leveling off, maybe even jumping a little bit in response to the

stimulus initiatives that the government has so far deployed. Thats an encouraging development for commodities.But, the Japanese GDP contracted 3.5% from a year earlier.

MTECHTIPS:-SGE to launch interbank Gold market; PBoC for Gold market sync
Shanghai Gold Exchange is expected to launch an interbank gold market in early December offering spot contract and forward contracts, according to its CEO who spoke at the London Bullion Market Association Conference. At the same conference, Xie Duo, general director of the People's Bank of China said the bank had not set a time line on issuing gold import licenses to banks.China's gold demand for this year is expected to grow 1% for 2012 at 860 tons, that means the country will outpace India in gold consumption on an yearly basis.He said the country was keen to open up the markets to international community, reported Reuters."Later on we will further open up and quicken the steps to integrate into the international market," Mr Xie Duo, added.

MTECHTIPS:-Silver: The precious metals with the weakest outlook

The poor man's gold, silver remains the precious metals with the weakest outlook, said Barclays Capital in a special metal report.According to the British bank, silver's industrial demand remains fragile. Chinas silver imports, in line with the PGMs, fell 3% y/y in September, although this was the slowest decline since January 2011. Exports, on the other hand, picked up 5% m/m, but fell much more sharply y/y at 23%. China remains a net importer of the White metal at 192 tonnes, but core components such as silver powder imports remain reverted to weakness with a fall of 7% in September, setting a fragile backdrop for silver prices.True to form, silver prices have suffered the most on the downside as prices across the complex have faced downward pressure. Our key concern with the silver market remains the fragility of industrial demand while mine production continues to grow, leaving the market balance within a bloated surplus.Silvers lagged rally was led by investment demand in September, which became less favourable in October, Barclays noted.The bank also noted that, ETP flows turned negative, registering a modest net outflow of less than 100 tonnes. Speculative positioning in Comex silver has eased to a one-month low but remains close to the elevated levels of April 2011 when prices hit thirty-one-year highs.

MTECHTIPS;-Gold is medium term bullish, support $1718, 1700

which had admitted last week that it had gone wrong in its estimation of gold prices in 2012, in its latest update has pointed out that the yellow metal is now medium term bullish supported by Obama Victory and uncertainty surrounding the fiscal cliff.On the other hand,

major gold purchasing just before Diwali is not indicated on softer Indian Rupee andi importers have refrained from purchases occassionaly buying on dips, Barclays report pointed out.Price forecast: Q4 2012: $1810/oz, 2012 annual average: $1691/oz Physically backed gold ETPs have continued their crawl higher and struck a new high during the week at 2613 tonnes. Although holdings eased less than a tonne on Friday, they completed the week with positive momentum, continuing their three month streak.

MTECHTIPS:-Gold: The next Strategic Commodity?

Imagine the US troops being sent to a remote gold mine in Africa to guard the assets there. Or a gold war breaking out in Africa wherein two or more groups can only talk to each other using bullets just because they cannot see each other when it comes to possessing gold properties.Replace the words 'gold' and 'Africa' with 'crude oil' and 'Middle East' and the picture becomes clear.Fast forward in time and you will not have to do this word substitution! Gold could well become a strategic asset in the coming years; not according some nondescript analyst but as Sun Zhaoxue wants it, the head of China National Gold Corporation.Currently at about 1054 tons, gold just accounts for 1.6% of Chinese $3.2tn foreign exchange reserves. In case of US, the figure stands at 70% of holdings. The US has the biggest economy in the world, followed by China.

MTECHTIPS:-Dhanteras rocks Gujarat Gold markets, sees 300 kg sales a day

Gold purchase by customers have virtually rocked the Gujarat markets with sales taking place to the tune of 300 kg in a single day on Sunday; the day of Dhanteras, although with a marked difference.Except those who were shopping for marriage, other customers preferred light weight gold jewellery. Heavy gold bangles were not sold, Shanti Patel, president of Gem & Jewellery Trade Council of India said to DNA India.However, jewellers are happy that gold sales are taking place, after all.We witnessed very good business this year. I believe the city has bought around 300-400 kg of gold on Sunday, looking at the rush of people at the gold shops. In a single day, we witnessed 20% more business than usual days. said president of Choksi Mahajan Association of Ahmedabad, Harshvardhan Dhaya Choksi.