Mtechtips

Gold has steadied at $1620 as markets look forward the US Federal Reserve meeting on Tuesday and Wednesday for further signals on QE3 to bolster economic growth. Investors are also eyeing the European Central Bank meeting on Thursday for pro-growth measures.On Monday trading spot gold is already up at $1623 an ounce after posting a weekly gain of 2.5%. The Eurozone uncertainties and slowdown in emerging economies have provided support for the yellow metal but in recent months prices have hovered around $1525 and $1640.Gold has traded has crossed the 100 day moving average in the weekend and looks poised for further upward movements. Large funds have already invested in gold hoping for QE3 to unfold.

MTECHTIPS:-Volatility extends in India Mentha Oil on reports of pan masala ban

Mentha Oil prices are expected to witness volatile to down side movement in this week on back of news coming from Uttar Pradesh, regarding reports of pan masala ban. However, lower arrivals might cushion mentha prices from sharp fall.According to sources, delayed decision on banning Guthakha (Tobacco based Mouth freshener) in UP is likely to come on Aug.01, Wednesday and expectations are high of banning tobacco products in UP.According to trade sources, arrivals have reduced drastically in Sambhal market. Arrivals across the major spot market are hovering in the range of 300-500 drums in entire UP.Mentha oil August futures prices witnessed very choppy trend during the last week after witnessing small recovery during previous weeks.However, limited arrivals across the spot market as farmers were not ready to sell their produce at lower rates limited huge fall in prices at spot as well as futures during the week.

MTECHTIPS;-India may regulate Cotton exports to meet domestic demand

With the rise in cotton price in Indian markets due to lower availability of cotton for the yarn makers as the demand for the commodity surged on ongoing festival season and upcoming wedding, the textiles ministry planning to regulate cotton exports of the country.The Indian market is experiencing lower availability of cotton as the traders are more interested in exporting the commodity rather than selling it in domestic market on the back of higher price received from the global market.And with the cotton exports are regulated, it would be easy for the government to control the demand, supply and prices of the commodity in the domestic market.India's cotton output for 2012-13 is expected to be around 33.6 million bales and is expected to export around 12.5 million tons. While domestic demand is estimated at 26 million tons.

MTECHTIPS:-India Gold imports likely to drop sharply in July

World's largest bullion consumer India's gold imports are likely to drop sharply in July this year on higher prices, said Bombay Bullion Association (BBA). India imported 250 tonnes of gold in the first six months of this year.“Country's yellow metal imports in this month is likely to be drop by as much as 35% to 40 metric tons and 50 metric tons,” said Prithviraj Kothari president of Bombay Bullion Association. He also attributed high inflation, weak equity and real estate market for the projected decline in gold imports. Indian gold imports have been very weak for much of the year. Firstly, high prices are keeping customers away from purchasing the yellow metal. Secondly, the increased duties by the government adds to the cost and makes gold even more expensive.Indian gold prices rallied after the rupee depreciated against the dollar and the government doubled the import duty on the metal. The rupee fell to a record 57.3275 per dollar on June 22, lifting the cost of commodities priced in the greenback, Kothari added.According to analysts, Indian festivals and weddings season may boost gold prices in coming months. Festivals season will start in August and continue till November, weddings also take place during this period.

MTECHTIPS:-India to export Wheat on rising demand, to reduced stress over warehouses

On the back of rising demand from both global and Indian market amid surging stocks in the country, India government started releasing wheat from the warehouses.Due to dry weather conditions in major wheat growing areas in U.S and in Russia among others, the output for 2012-13 is forecast to drop drastically amid rising demand, pushing the price of the commodity up.Currently, Australian wheat is priced at $350 per ton, while the Black sea or the Ukranian variety is at $300 per tons. But, Indian variety is priced at $280-290 a ton, which is lower than other suppliers.Competitive pricing has boosted the demand for India's wheat in the global market and also in domestic market.To curb the price rise and also to reduce stress over the warehouses in the country, India government has started releasing wheat.