MTECHTIPS COMMODITY MARKET NEWS 2

MTECHTIPS:-Crude gains on word of Greek deal reached

Crude oil futures gained in Asian trading on Tuesday on talk EU and IMF officials reached a deal on Greek debt targets needed to free up aid for the crisis-weary country.On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD87.99 a barrel on Tuesday, up 0.28%, off from a session high of USD88.06 and up from an earlier session low of USD87.72.Financial assistance may soon be flowing into Greece anew, staving off fears the country will default in the process.Greece's EU and IMF creditors agreed to reduce the country's debt target by EUR40 billion to 124% of gross domestic product by 2020, an accord needed to free up aid, sources told Reuters.The euro jumped up on the news though gains were limited as it was not clear how the country will cut that debt to 124% of GDP by 2020 from its current forecast level of 144%. Reports emerged earlier the European Central Bank President Mario Draghi has said a deal had been struck though he gave no details.

MTECHTIPS:-Gold gains as reports emerge that EU, IMF reach debt deal on Greece
Gold prices rose in Asian trading on Tuesday on reports EU and IMF officials agreed on debt targets for Greece, which should free up aid and steer the country away from default.The news sent the euro gaining and the dollar dropping, a recipe for climbing gold prices.On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.11% at USD1,753.95 a troy ounce, up from a session low of USD1,750.945 and down from a high of USD1,754.15 a troy ounce.Gold futures were likely to test support at USD1,720.25 a troy ounce, Wednesday's low, and resistance at USD1,754.95, the high of Oct. 17. Gold and the dollar trade inversely from one another, and reports that aid increasingly looks likely to resume flowing into Greece sent the greenback falling as investors snatched up euro positions, sending gold climbing in the risk-on trading session as well.Greece's EU and IMF creditors agreed to reduce the country's debt target by EUR40 billion to 124% of gross domestic product by 2020, an accord needed to free up aid.The euro jumped up on the news though gains were limited as it was not clear how the country will cut that debt to 124% of GDP by 2020.

MTECHTIPS:-Crude Oil: Greece debt deal lends upside to futures

With the Eurozone finance ministers and IMF clinching a deal to take the debt levels of Greece to 124% of GDP by 2020, the way has been cleared for the tranche of funds to be released in aid of the debt-stricken nation. This lent an upside to crude oil futures as markets got the feel that efforts are being undertaken to climb out of the ditch that Eurozone got itself into."I very much welcome the decisions taken by the ministers of finance. They will certainty reduce the uncertainty and strengthen confidence in Europe and in Greece." European Central Bank President Mario Draghi said to media.Europe accounts for 16% of world's crude oil consumption, almost half of US and Chinese consumption taken together.Another life line for Greece is supportive for oil, as it shows we are slowly working our way through the euro crisis, said Jeremy Friesen, a commodity strategist at Societe Generale SA inHong Kong to Bloomberg. Improvements in the euro crisis should be positive for the euro and thus could also add some weaker-dollar support to oil prices.Brent

crude for January delivery on the ICE Futures Europe climbed 0.2% to touch $111.06 a barrel as on 10.00 am IST. Meanwhile, its trans-Atlantic counterpart, WTI crude oil for the same month climbed 0.26% and was seen trading at $88.03 a barrel.

MTECHTIPS:-Gold may try testing $1800 levels this week: Analyst

As the Greek debt deal is clinched by the troika of European Central Bank, IMF and Finance Ministers of Europe, Euro strengthened against Dollar which helped gold prices to climb. Meanwhile a Chinese analyst is of the opinion that gold may test $1,800 levels this week.As investors once again gain confidence in Europe after leaders give Greece another chance, that will help the euro and in turn gold, said Wang Xiaoxi, an analyst at Beijing Capital Futures Co., a unit of the Chinese capitals investment arm to Bloomberg.The market may try for a test of $1,800 this week. he added.Spot gold prices have climbed to $1,749.94 an ounce at 10.50 am IST even as gold for February delivery on the Comex was seen trading at $1752.55 an ounce, a gain of 0.03%.On India's MCX, gold for December delivery was seen trading at Rs.32425 for 10 grams, a gain of 0.20% as of 10.41 am IST.As per the debt deal, the debt levels of Greece will be brought down to 124% of GDP by 2020. This has cleared way for the tranche of funds to be released in aid of the debt-stricken nation to the tune of 43.7 billion euros.

MTECHTIPS:-Gold: Two unfolding events may lead to safe haven buying

A New York based financial-services firm INTL FCStone Inc cites two unfolding events that could lead to safe-haven buying of gold.Protests are occurring in Egypt after decrees from President Mohamed Mursi consolidating power. The country's stock market has tumbled and the Muslim Brotherhood is expected to stage a massive demonstration in support of Mursi, which could set the stage for more violence."The Egyptian situation should be largely supportive for gold, as it could fuel further 'safe refuge' buying by Mideast origins," said Edward Meir, commodities consultant with INTL FCStone.Meanwhile, US lawmakers and the administration still have not resolved the so-called fiscal cliff issue, and much remains to be done.