International benchmark Brent lost over 1% on Monday, resuming losses after a two-day hiatus, rebounding from four-month lows on global demand concerns.

Such concerns are persisting due to weak Chinese data, and a potential US policy tightening measure in December. 

Brent 

Brent fell 1.1% to $80.45 a barrel, after rising 2.2% on Friday, the second profit in a row, moving off four-month lows at $79.24. 

Brent lost 4.1% last week, the third weekly loss in a row as markets focus on weak demand in the US and China.

US Demand 

Initial data showed the US crude inventory rose to three-month highs, in a negative sign for demand in the world's largest fuel consumer. 

Fed Chair Jerome Powell has recently opened the way for another potential interest rate hike in December. 

Chinese Demand 

Recent Chinese data showed consumer prices slowed down in October, hitting Covid 19 Pandemic-lows, in turn renewing concerns about fuel demand and recovery. 

Additionally, Chinese refineries has requested less supplies from Saudi Arabia in December than in the previous month. 

Dollar fell in European trade on Monday against a basket of major rivals, extending losses for the second straight session away from one-week high on active profit-taking, ahead of crucial US inflation data.

Such data will showcase the strength of the inflationary pressures on Fed policymakers, and will provide important clues on the likelihood of another US interest rate hike in December.

The Index

The dollar index fell 0.1% to 105.68, with a session-high at 105.86, after closing down 0.1% on Friday, the first loss in five days away from a week high at 106.

The index rose 0.7% last week, the second weekly profit in three weeks following bullish remarks by Fed officials. 

Fed Chair Jerome Powell said last week the Fed is still not confident it had done everything it could to control inflation, adding the bank stands ready to tighten policies once more if needed. 

Minneapolis Fed President Neil Kashkari said the Fed might still have some work to do to control inflation.

Philadelphia Fed President Patrick Harker said the decision on interest rates will depend on upcoming data.

US Rates

Odds for a US interest rate hike in December rose from 9% to 15%.

Traders also now expect the Fed to cut interest rates in July 2024 instead of June 2024.

Inflation Data

Now investors await crucial US inflation data for October, which will help determine the likely path ahead for US monetary policies. 

Gold prices fell in European trade on Monday, holding above three-week lows as the dollar slows down against a basket of major rivals. 

Now investors await crucial US inflation data this week, which could provide important clues on the likelihood of another US interest rate hike in December. 

Gold Prices Today

Gold prices rose 0.2% to $1,942 an ounce, with a session-low at $1,934, after losing over 1% on Friday, marking a three-month trough at $1,933 as risk appetite rebounds. 

Gold prices lost 2.7% last week, the second weekly loss in a row, and the largest since late September following a batch of bullish remarks by Fed officials. 

The Dollar 

The dollar index fell 0.1% on Monday, extending losses for a second session against a basket of major rivals.

A weaker dollar underpins dollar-denominated gold futures as they become cheaper to holders of other currencies. 

US Rates

Pricing for a US interest rate hike in December currently stands at 15%. 

Inflation Data

Now investors await important US consumer prices data for October to gauge the likelihood for such an interest rate hike in December. 

Fed Chair Jerome Powell said last week the Fed is still not confident it had done everything it could to control inflation, adding the bank stands ready to tighten policies once more if needed. 

The SPDR 

Gold holdings at the SPDR Gold Trust rose 0.87 tonnes on Friday to a total of 868.15 tonnes, the highest since October 4. 

Dollar rose in European trade on Friday against a basket of major rivals, extending gains for the fifth straight session, scaling a one-week high and on track for the largest weekly profit in four months. 

Recent bullish remarks by Fed officials including Fed Chair Jerome Powell boosted the chance of another 0.25% interest rate hike next month.

The Index

The dollar index rose 0.15% to 105.99, the highest in a week, with a session-low at 105.77. 

The index closed up 0.4% yesterday, the fourth profit in a row, after rising 0.9% last week, on track for the second weekly profit in three weeks, and the largest since July.

Fed Remarks

Fed Chair Jerome Powell said on Thursday that was the Fed has done so far might not be enough to contain inflation, asserting the Fed is prepared to tighten policies further if needed.

Minneapolis Fed President Neil Kashkari said the Fed might still have some work to do to control inflation.

Philadelphia Fed President Patrick Harker said the decision on interest rates will depend on upcoming data.

US Rates

Odds for a US interest rate hike in December rose from 9% to 15%.

Traders also now expect the Fed to cut interest rates in July 2024 instead of June 2024.