International benchmark Brent rose 1.5% on Monday, resuming recovery from four-month lows after both Saudi Arabia and Russia asserted their commitment to voluntary crude production cuts until the end of the year.

The gains are also boosted by the dollar's decline against a basket of major rivals, making dollar-denominated commodities cheaper to holders of other currencies. 

Brent Price Today

Brent crude rose 1.5% to $86.41 a barrel, with a session-low at $84.96, after losing 2.1% on Friday, the fourth loss in five days, marking four-week lows at $84.61.

The international benchmark lost 4.1% last week amid concerns about global demand, especially in Europe and China.

Saudi and Russian Cuts

The Saudi Energy Ministry issued a statement asserting its commitment to voluntary production cuts amounting to a million bpd through December, maintaining Saudi output at 9 million bpd. 

Simultaneously, Russia also asserted its adherence to production cuts amounting to 300 thousand bpd until the end of December.

The Dollar

The dollar index fell 0.25% on Monday, sharpening losses for the fourth straight session, marking a two-month trough at 104.85 against a basket of major rivals.

Such a decline came following disappointing US labor sector data, which hurt chances of another Federal Reserve interest rate hike in December.

Dollar fell in European trade on Monday against a basket of major rivals, sharpening losses for the fourth day in a row, plumbing a two-month low following disappointing US labor data. 

Such data reduced the probabilities of another US interest rate hike in December, and bolstered the case that the Federal Reserve has already ended its current cycle of policy tightening.

The Index

The dollar index fell 0.2% to 105.85, the lowest since September 20, with a session-high at 105.15.

The index closed down 1% on Friday, the third loss in a row, and the largest since July 12 following the US jobs report. 

The index fell 1.4% last week, the second weekly loss in three weeks, and the largest since July. 

US Labor Data

Recent  data showed US job growth slowed down in October while the unemployment rate rose to 21 year highs, as wage growth also slowed down to 2-1/5 year low.

Such weakening labor data bolsters the case that the Federal Reserve has already wrapped up its campaign to hike interest rates in the US.

US Services Sector 

The ISM institute reported a drop of the ISM Services PMI in October to 51.8, from 53.6 in the previous reading.

Such data shows the rapid slowdown of the US economy during the fourth quarter.

US Rates

Following the US payrolls report, estimates for a US 0.25% interest rate hike in December tumbled to 10%.

Now traders put a 86% chance the Federal Reserve will cut interest rates in July 2024.

Gold prices fell in European trade on Monday, on track for the first loss in three days as investment demand weakens, while most global stock markets advance.

The losses were contained by the dollar's decline to two-month lows against a basket of major rivals following disappointing US labor data. 

Gold Prices Today

Gold prices fell 0.5% to $1,982 an ounce, with a session-high at $1,993, after rising 0.35% on Friday, as the dollar and US treasury yields declined. 

Gold lost 0.65% last week, the first weekly loss in a month on profit-taking off five-month highs at $2,009.

Investment Demand 

Investment demand on gold as a safe haven declined recently as risk appetite rebounds in the markets, which shows in the strong gains in the stock markets worldwide.

Such positive sentiment developed amid hopes that most global central banks have ended the recent cycles of policy tightening, and could even start cutting interest rates in early 2024.

The Dollar

The dollar index fell 0.2% on Monday on track for the fourth loss in a row, plumbing a two-month low at 104.85 against a basket of major rivals.

Recent  data showed US job growth slowed down in October while the unemployment rate rose to 21 year highs, as wage growth also slowed down to 2-1/5 year low.

Such weakening labor data bolsters the case that the Federal Reserve has already wrapped up its campaign to hike interest rates in the US.

US Rates

Following the US payrolls report, estimates for a US 0.25% interest rate hike in December tumbled to 10%.

Now traders put a 86% chance the Federal Reserve will cut interest rates in July 2024.

The SPDR

Gold holdings at the SPDR Gold Trust rose 1.73 tonnes on Friday to a total of 863.24 tonnes, the highest since October 20.

Palladium prices rose on Friday as the dollar lost ground against a basket of major rivals following disappointing data.

The official US payrolls report showed the economy added 150 thousand non-farm new jobs in October, below estimates of 178 thousand, while the previous reading was revised to show an addition of 297 thousand jobs in September instead of 336 thousand.

US unemployment rose to 3.9% in October, the worst reading since January 2022, while analysts expected 3.8%.

A Reuters survey showed that analysts expect platinum and palladium prices to decline in 2024 as automotive production slows down.

Both metals are used in the car industry to reduce exhaust fumes, while platinum is additionally used in other industries and as a precious metal.

Average opinions expect platinum to fall to $1,023 an ounce in 2023, down from $1100 in earlier surveys.

Platinum is down 14% so far this year after a spike in April and May due to supply disruptions in South Africa.

A dip in automotive production, especially in the US, hurt platinum demand.

As for palladium, the Reuters survey expects the price to average $1,250 an ounce in 2024, down from $1,369 in previous surveys.

Palladium tumbled 38% so far this week, hitting five-week lows at $1,083.

Otherwise, the dollar index fell 1.1% as of 16:47 GMT to 105, with a session-high at 106.2, and a low at 104.9.

Palladium December futures rose 1.2% to $1123.5 an ounce as of 16:48 GMT.