Gold held on to a small loss from the previous session on Monday, amid expectations of a U.S. Federal Reserve interest rate hike in September and fears of escalating trade tensions between the United States and China. U.S. jobs growth accelerated in August, with wages notching their largest annual increase in nine years, strengthening views the economy was so far weathering the Trump administration’s escalating trade war with China. The stronger-than-expected payrolls data cemented expectations that the U.S. Fed will raise interest rates in September, in what would be its third hike this year.
London copper was trading steady on Monday morning after it registered its second weekly loss as an intensifying trade war between the United States and top metals consumer China raised concerns over demand. For the week, LME and Shanghai copper are down 1.7 percent. U.S. President Donald Trump has said he is prepared to quickly ramp up the trade war with China and has told aides he is ready to impose fresh tariffs on $200 billion worth of Chinese imports as soon as a public comment period on the plan ends.
Oil prices rose on Monday as US drilling for new production stalled and as the market eyed tighter conditions once Washington’s sanctions against Iran’s crude exports kick in from November. US energy companies cut two oil rigs last week, bringing the total count to 860, energy services firm Baker Hughes said on Friday. The US rig count has stagnated since May, after staging a recovery since 2016, which followed a steep slump the previous year amid plummeting crude prices.
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