Commodity Capsule: Brent crude oil mixed; gold slips; nonferrous metals decline

Commodity Capsule: Oil prices were mixed on Tuesday, after losses in the previous session.

Markets weighed broad economic concerns against weather-related US demand-supply issues, and Middle East tensions.

Brent crude futures is traversing between $77 and 79 a barrel.

Extremely cold weather in the U.S. that could curb oil production and also affect major refinery operations was in focus as well.

North Dakota oil production has already fallen by 400,000 to 425,000 bpd due to extreme cold and related operational issues.

Gold fell slightly on Tuesday, hovering around $2,050, as US dollar and Treasury yields jumped.

Investors awaiting comments from a host of Federal Reserve speakers this week for more clarity on the central bank's interest rate trajectory.

The dollar index leaped to a 10-day high, while yields on benchmark US 10-year Treasury notes rose to near 4 per cent levels.

At the end of its January 30-31 meeting, the Fed is expected to hold its policy rate steady.

Traders are betting on six rate cuts of 25 basis points each (bps) this year, with about a three-in-four chance that the first one could come as soon as March-- LSEG's interest rate probability app.

A host of Fed officials are due to speak this week, with Fed Governor Christopher Waller scheduled to deliver a speech on the economic outlook before the Brookings Institution.

Meanwhile, European Central Bank officials pushed back against market expectations for rapid rate cuts this year.

Prices of most nonferrous metals declined on Tuesday, weighed down by a stronger dollar and concerns about demand in China.

Copper on the London Metal Exchange hovered $8,300/metric ton mark, while copper on the Shanghai Futures Exchange was nearly flat at 67,760 yuan/ton.

The dollar climbed as hawkish remarks from central bankers tempered expectations for interest rate cuts and traders waited to hear from US Federal Reserve's influential Christopher Waller.

China's central bank left medium-term policy rate unchanged on Monday, defying market expectations for a cut as a weaker currency limited the scope of near-term monetary easing to boost the economy.

SHFE zinc rose 0.9 per cent to 21,310 yuan; the highest level since January 4, due to Nyrstar's suspension plan for its zinc smelting operations in the Netherlands.

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