Commodity Capsule: Brent crude oil rises; gold and copper slips
Commodity Capsule: International Spot prices fell below $2,000 an ounce first time since November 24, marking a sharp reversal from record highs hit last week.
Commodity Capsule: Gold prices fell below key levels on Monday, as spot prices in global markets slipped under the $2,000 an ounce mark.
Strong labor market data saw traders rethink bets that the Federal Reserve will begin trimming interest rates earlier in 2024.
International Spot prices fell below $2,000 an ounce first time since November 24, marking a sharp reversal from record highs hit last week.
The resilient dollar and signs of strength in the US economy weigh on the yellow metal.
Both instruments were trading about $150 below record highs hit last week.
Traders are wary of gold before the Fed meeting this week.
Fed’s outlook for loosening monetary policy in 2024 will be closely watched.
Market eyes interest rate decisions from the Bank of England, European Central Bank, and Swiss National Bank are due this week.
Copper along with other base metals dipped as China's disinflation feeds demand fears.
LME copper prices fell on Monday, hovering $8,400/T level, tracking weak economic signals from China.
LME copper delivered its first weekly decline in four; the Worst since October 1.
LME Zinc and Lead are hovering 3.5-6 months low.
Chinese consumer price index inflation contracted for 2nd straight month in November.
Contraction in producer price index inflation deepened into a fourteenth consecutive month.
Readings indicated that China was likely to see sustained economic weakness in the coming months, as spending failed to pick up despite continued liquidity measures from Beijing.
Oil prices rose on Monday, extending gains for 2nd session
US efforts to replenish strategic reserves provided some support, although concerns of crude oversupply and softer fuel demand growth next year persisted.
Brent crude futures rose past $76.32 a barrel, while WTI crude futures were hovering past $71.50 a barrel.
For Brent and WTI crude futures, this was the seventh consecutive weekly decline.
Both contracts jumped over 2 per cent on Friday but fell for 7th straight week, their longest streak of weekly declines since 2018.
Recent price weakness drew demand from the US as it bought up to 3 million barrels of crude for SPR for delivery in March 2024.
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