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.

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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.

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