Commodity Capsule: Brent crude slips over 1%; gold trade higher; non-ferrous metals climb | Watch video

Commodity Capsule: Oil prices slipped over 1 per cent on Monday as investors adopt caution ahead of the US Federal Reserve policy meeting, China's manufacturing data due this week.

Investors are watching for the outcome of Wednesday's Fed meeting, US jobs data, and earnings from tech giant Apple Inc.

Brent and WTI ended 3 per cent higher on Friday after Israel stepped up its ground incursions into Gaza, stoking oil supply worries in the Middle East.

Last week, the crude benchmarks marked their first weekly fall in three as developments in the Middle East keep investors on edge and prices volatile.

Gold prices remained above the key $2,000 level as uncertainty over the Israel-Hamas war kept safe haven demand elevated.

Yellow metal hovers five and half month high as continued uncertainty over Middle Eastern conflict kept investors biased towards traditional safe havens.

Israel had over the weekend launched a ground assault on Gaza, with markets waiting to see if any other Arab powers would join the conflict.

Gains in gold were held back by a stronger dollar, as markets positioned for a Federal Reserve meeting this week.

The dollar index and US treasury yields firmed slightly on Monday.

Global gold in spot and futures remained close to their highest level since mid-May.

Non-ferrous metals climbed on Monday as supportive economic measures from China boosted sentiment, while upbeat demand for copper lifted prices.

LME Copper treaded past $8,100 per metric ton mark. December copper contract on the Shanghai Futures Exchange advanced to 67,310 yuan/ton.

Both benchmarks are hovering at the highest level since October 9.

Chinese PMI data is due on Tuesday, and is expected to show more improvement in manufacturing activity.

But gains in copper are still likely to be limited, as anticipation of the Fed meeting keeps risk appetite weak.

Yangshan copper premium hit $91.50 a ton late last week, more than triple since the start of August and the highest level since November 2022.

Chicago soybean futures held at six-week highs on Monday, as speculators bet on higher prices amid strong demand for U.S. beans and soymeal.

Soybeans have gained around 4 per cent in October and on Monday the oilseed hovers the highest since September 18.

CBOT December soymeal is up 15 per cent this month, having reached a contract high of $448.4/ton on Friday before falling slightly.

US soybean meal exports are headed to new highs this season with big weekly sales volumes rolling in after a low soybean harvest in Argentina.

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