Commodity Capsule: Brent crude rise; gold slips; copper trades in a tight range | Watch video

Commodity Capsule: Oil prices rose on Monday amid easing fears of more Federal Reserve rate hikes.

Anticipation of several economic readings this week, particularly from China, kept traders on edge.

Markets were encouraged by the prospect of tighter supplies after Saudi Arabia and Russia reconfirmed their ongoing supply reductions until year-end.

Losses in crude oil benchmarks were tempered by a drop in the dollar, amid less hawkish signals from the Fed and weaker-than-expected payroll data.

Both contracts plummeted some 6 per cent in the prior week.

Crude markets were now focused squarely on key economic readings from China, due later in the week. 

Chinese trade data is due on Tuesday and is expected to provide more cues on commodity demand in the country.

Copper traded within a tight range on Monday, as investors weighed demand uncertainty and higher supplies against support from the softer US dollar.

Copper on the London Metal Exchange moved at $8,200/metric ton, after recording a weekly gain on Friday.

The red metal is facing slower seasonal consumption in the winter, while patchy economic recovery in China added uncertainty to its demand outlook.

Meanwhile, stocks on LME warehouses have largely climbed, despite a recent decline.

Copper stocks in SHFE warehouses rose 11.3 per cent last Friday, but are still around a one-year low level.

Gold prices fell on Monday, as any relief over a potential pause in Federal Reserve’s rate hikes was largely offset by traders selling the yellow metal

Gold in global spot and futures is largely keeping under the key $2,000 an-ounce mark.

Gold saw some strength last week as weaker-than-expected US nonfarm payrolls data, coupled with deep declines in dollar and Treasury yields.

Any major upside in the yellow metal was limited, as traders pivoted largely into risk-driven assets such as stocks and currencies. 

Safe haven demand for gold was further dented by a declining risk premium on the Israel-Hamas war.

Concerns over the conflict had driven large gains in gold through October. 

But with the conflict now appearing unlikely to spill over into the broader Middle East region, traders locked in their profits on the yellow metal.

Chicago soybean futures climbed to a seven-week high on Monday with erratic weather in Brazil and demand for U.S. cargoes.

Additional support for soybeans from a weaker dollar.

CBoT soybean climbed to the $13.60 a bushel mark, after reaching its highest since September 15.

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