Gold prices drifted higher at the start of a busy week on Monday, as investors looked ahead to key U.S. economic reports to gauge how it will impact the Federal Reserve’s view on monetary policy in the months ahead
Gold Prices Drift Higher at Start of Busy Week – Gold prices drifted higher at the start of a busy week on Monday, as investors looked ahead to key U.S. economic reports to gauge how it will impact the Federal Reserve’s view on monetary policy in the months ahead. Market players will keep an eye out on a few U.S. economic reports, with Wednesday’s inflation data in the spotlight, for fresh clues on the likely trajectory of monetary policy. Besides the inflation report, this week’s calendar also features U.S. data on retail sales, producer prices, building permits, housing starts, industrial production, as well as surveys on manufacturing conditions in the Philadelphia and New York regions. Meanwhile, comments from a clutch of Fed policymakers, including Chair Janet Yellen, will also be on the agenda. The U.S. central bank is scheduled to hold its final policy meeting of the year on Dec. 12-13, with interest rate futures pricing in a 100% chance of a rate hike at that meeting, according to Investing.com’s Fed Rate Monitor Tool. Elsewhere, on the political front, tax reform will likely stay at the forefront, as markets look for any new developments on the Trump Administration’s tax bill. Some traders believe tax reforms could bolster growth, adding pressure on the Fed to raise interest rates. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
Crude Oil Prices Slip From 28-Month Highs as U.S. Drilling Picks Up – Crude prices were a bit lower to start the week on Monday, slipping from their strongest level in more than two years amid indications that U.S. producers will ramp up output to take advantage of the recent rally. The weekly rig count is an important barometer for the drilling industry and serves as a proxy for domestic oil production. Losses were limited amid optimism that oil producing countries will agree to extend an output cut at their meeting at the end of this month. Under the original terms of the deal, OPEC and 10 other non-OPEC countries led by Russia agreed to cut production by 1.8 million barrels a day (bpd) for six months. The agreement was extended in May of this year for a period of nine more months until March 2018 in a bid to reduce global oil inventories and support oil prices. Discussions are continuing in the run-up to the Nov. 30 meeting, which oil ministers from OPEC and the participating non-OPEC countries will attendThe cartel will release its monthly market report at approximately 6:00AM ET (1100GMT). The data will give traders a better picture of whether a global rebalancing is taking place in the oil market. Meanwhile, market players kept a watchful eye on developments in the Middle East as well as escalating tensions between Saudi Arabia and Iran. Saudi Arabia is among the world’s top producers of oil and OPEC’s most influential member.
SHFE Zinc Rises over 1%, Leading Gain among Base Metals – Today see a slight increase across the board at daytime closure. SHFE Zinc rises over 1%, leading gain among base metals. SHFE Lead and Nickel rise nearly 1%. SHFE Tin, Copper, Aluminium all gain slightly. Ferrous metals differentiate. Hot-rolled coil leading gain with over 2% rise. Iron ore rises over 1%. RB steel rises nearly 1%. Coking coal slightly rises. Coke leading loss with 2% drop.
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