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To dream that you are knitting signifies a quiet, peaceful and loving home life. It may also refer to someone in your life (past or present) who you associate with knitting. Alternatively, knitting symbolises your creativity or accomplishments. You need to take time out from your regular routine.
To dream that you have difficulties knitting means that you are avoiding some issue.
To see knitting needles in your dream suggest that you are manipulating a situation in order to get a desired outcome.