MTECHTIPS COMMODITY MARKET NEWS 4

MTECHTIPS:-Gold little changed in cautious trade; EZ GDP data, G20 in focus

Gold futures fluctuated between small gains and losses in rangebound trade during European morning hours on Thursday, as investors digested reports showing larger-than-forecast contractions in German and French fourth quarter economic growth.Market players remained cautious ahead of a meeting of Group-of-20 finance ministers in Moscow later in the week, which was likely to feature discussions on competitive currency devaluation.A weak technical picture also continued to weigh on the precious metal after prices broke below a key support level earlier in the week.On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,644.75 a troy ounce during European morning trade, nearly flat on the day.Prices held in between a tight range of USD1,641.75 a troy ounce, the daily low and a session high of USD1,646.25 a troy ounce. Gold futures fell to a five-week low of USD1,639.65 a troy ounce on February 12.Gold prices were likely to find support at USD1,626.05 a troy ounce, the low from January 4 and resistance at USD1,670.25, the high from February 11.The euro came under heavy selling pressure after data showed that Germanys economy, the euro zones largest, contracted by 0.6% in the in the fourth quarter, worse than expectations for a 0.5% fall.Frances economy also contracted more than forecast, with gross domestic product falling by 0.3%, from 0.1% growth in the third quarter. Economists had forecast a contraction of 0.2% in the fourth quarter.The euro zone was to release preliminary data on fourth quarter growth later in the session.Meanwhile, in Japan, official data showed that Japans economy contracted by 0.1% in the fourth quarter, compared to expectations for an uptick of 0.1%.The downbeat global growth outlook prompted investors to shun riskier assets and move in to the relative safety of the U.S. dollar.

MTECHTIPS:-Crude oil futures higher despite grim euro zone growth outlook
Crude oil futures were higher during European morning hours on Thursday, despite data showing a worsening of the financial situation in the euro zone.On the New York Mercantile Exchange, light sweet crude futures for delivery in March traded at USD97.31 a barrel during European morning trade, up 0.3% on the day.New York-traded oil prices held in between a tight range of USD96.94 a barrel, the daily low and a session high of USD97.38 a barrel. Oil prices rose to USD98.09 a barrel on Wednesday, the strongest level since February 1.Fresh euro zone concerns were sparked by official data showing that Germanys economy, the bloc's largest, contracted by 0.6% in the in the fourth quarter, worse than expectations for a 0.5% fall, after a 0.2% expansion in the three months to September. Separately, Frances economy also contracted more than forecast, with gross domestic product falling by 0.3%, from 0.1% growth in the third quarter. Economists had forecast a contraction of 0.2% in the fourth quarter.Also Thursday, data showed that Italys economy shrank 0.9% in the three months ended December 31, worse than expectations for a 0.6% drop.The euro zone was to release preliminary data on fourth quarter growth later in the session.

MTECHTIPS:-Copper futures turn lower after dismal German, French GDP data
Copper futures turned lower during European morning hours on Thursday, as appetite for growthlinked assets weakened amid fresh fears over the euro zones economic outlook.Activity was subdued with market participants in China away for the Lunar New Year holiday. China is the worlds largest copper consumer, accounting for almost 40% of world consumption last year.On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.737 a pound during European morning trade, down 0.2% on the day.New York-traded copper prices held in between a tight range of USD3.736 a pound, the daily low and a session high of

USD3.750 a pound.Fresh euro zone concerns were sparked by official data showing that Germanys economy, the bloc's largest, contracted by 0.6% in the in the fourth quarter, worse than expectations for a 0.5% fall, after a 0.2% expansion in the three months to September.Separately, Frances economy also contracted more than forecast, with gross domestic product falling by 0.3%, from 0.1% growth in the third quarter. Economists had forecast a contraction of 0.2% in the fourth quarter.

MTECHTIPS:-NCDEX Jeera: Support at 12800; resistance 13700

Trend of jeera on the NCDEX for March delivery is looking sideways at current levels with support for the commodity seen at 12800 level and resistance at 13700.The contract is trading on a positive note at Rs.13225, a gain of 0.42% as of 12.20PM IST, Thursday.Over all trend of jeera for March delivery is looking sideways at current levels. Support is seen at 12800 level while 13700 is the resistance.Either side break out will give clear direction to the prices. Until then it is expected to trade in the current range of 12800-13700, he added.Higher production prospects are likely to keep pressure on market sentiments. Good sowing reports from Gujarat and Rajasthan of India are also keeping sentiments down.

MTECHTIPS:-NCDEX Wheat likely to witness trend reversal above 1480

Trend reversal in NCDEX Wheat March contract is expected as the commodity has breached the key resistance level of 1480.The contract was trading on a positive note at Rs. 1473, a gain of 2.22% as of 02.54 due to good buying along with good volumes. Fundamentals are also strong which limits the down side.Support for the contract is seen at 1430 level.Traders may buy at these levels as potential for downside is likely to remain low, he added.India's wheat output is likely to be close to last year's record level of 93.90 million tons. According to official data, area sown under wheat has declined to 294.98 lakh hectares so far in the current rabi season, from 295.93 lakh hectares in the year-ago period.