Brent declines for fourth straight session
International benchmark Brent fell on Monday for the fourth straight session to below $80 a barrel amid demand concerns in the US, the world's largest fuel consumer.
Now investors await OPEC+ meeting later this week, which could result in a deal to deepen and extend supply cuts until 2024.
Brent Prices Today
Brent tumbled 1.3% to $79.11 a barrel, with a session-high at $80.66, after losing 1.2% on Friday, the third loss in a row after the delay of the OPEC+ meeting.
Brent slipped 0.6% last week, the fifth weekly loss in a row amid demand concerns in the US and China.
US Demand
In a sign of slowing economic activities, Friday data showed the US manufacturing slowing down sharply in November.
Official EIA data showed US crude stocks surged by the most in four months in a negative sign for demand.
OPEC+
The OPEC+ coalition issued a statement about delaying its next meeting from November 25 to November 30.
The delay comes as markets closely await a potential decision of extending the ongoing supply cuts and deepening them in 2024, after oil prices tumbled 15% since September.
Three sources told Reuters that OPEC+, which includes Russia, is discussing additional supplies cuts at the November meeting.
Silver rallies 2% to three-month high
Silver prices rose over 2% in European trade on Monday, extending gains for the third session and scaling a three-month high, a few dollars away from the coveted $25.
Dollar is hovering near three-month lows as the Federal Reserve is presumed to wrap up the current cycle of policy tightening.
Silver Prices
Silver prices rose 2% to $24.82 an ounce, the highest since September 1, with a session-high at $24.26, after rising 1.9% on Friday, the second profit in a row, following weak US data.
Silver rallied 2.5% last week, the second weekly profit in a row, as dollar and US treasury yields lose ground while demand improves in China.
The Dollar
The dollar index fell 0.2% on Monday, extending losses for the third session and almost touching a three-month trough at 103.18 against a basket of major rivals.
Recent data showed the US manufacturing sector shrank by a faster than expected pace in November, raising concerns about the health of the economy.
US Rates
The odds for another interest rate hike by the Federal Reserve in December tumbled to just 3%.
There's now a 30% chance of a Fed interest rate cut in March, and a 60% chance of an interest cut in May.
Investors await new data on US GDP growth and personal spending later this week.
Such data will offer more clues on the likely path ahead for US monetary policies, especially at the Fed December meeting.
Gold extends gains to six-month high as dollar slips
Gold prices advance in European trade on Monday, extending gains for the third straight session, and scaling a six-month high, while holding ground above the $2000 barrier, as the dollar loses ground.
The dollar lost ground as investors rule out another interest rate hike by the Federal Reserve next month with the policy tightening cycle wrapping up.
Gold Prices Today
Gold prices rose 0.1% to $2,018 an ounce, the highest since May, with a session-low at $1,998, after rising 0.5% on Friday, as the dollar lost ground.
Gold rallied 1.1% last week, the second weekly profit in a row as global markets wrap up the current cycle of policy tightening and prepare for the first interest rate cut.
The Dollar
The dollar index fell 0.2% on Monday, on track for the third loss in a row, almost touching three-month lows against a basket of major rivals.
A weaker dollar makes dollar-denominated gold futures cheaper to holders of other currencies.
Recent data showed the US manufacturing sector shrank by a faster than expected pace in November, raising concerns about the health of the economy.
US Rates
The odds for another interest rate hike by the Federal Reserve in December tumbled to just 3%.
Fresh Data
Investors await new data on US GDP growth and personal spending later this week.
Such data will offer more clues on the likely path ahead for US monetary policies, especially at the Fed December meeting.
The SPDR
Gold holdings at the SPDR Gold Trust remained flat on Friday at 882.28 tonnes.
Euro hovers near three-month high ahead of Lagarde's speech
Euro rose in European trade on Monday against a basket of major rivals, extending gains for the third session against the dollar, and almost hitting a three-month high ahead of European Central Bank President Christine Lagarde's testimony ahead of the Brussels Parliament.
The testimony could have clues about the future path of European monetary policies and the prospects of the fight with inflation.
EUR/USD
EUR/USD rose 0.15% to 1.0959, with a session-low at 1.0926, after rising 0.3% on Friday, the second profit in a row, approaching a three-month high at 1.0965.
The pair rallied 0.25% last week, the second weekly profit in a row as concerns about the interest rate gap with the US fade.
Lagarde's Testimony
European Central Bank President Christine Lagarde will testify ahead of the European Parliament later today.
Most investors expect the ECB to have ended its current cycle of policy tightening, with speculation now turning to the likely date of the next interest rate cut.
Lagarde recently asserted the importance of maintaining vigilance until inflation is proven to have tapered off towards the 2% targets,