Gold prices-Gold steadied on Monday, retaining sharp gains from the previous trading session, as weakness in the dollar and equities helped the metal recoup some losses from a U.S. interest rate hike last week. Gold's Friday move followed a 2-percent loss in the session prior to that, the metal's biggest single day loss in five months, as the Federal Reserve raised U.S. interest rates for the first time in nearly a decade. The Fed will raise interest rates again in the next three months, according to two-thirds of economists polled by Reuters, although many say rates won't rise as quickly next year as policymakers have suggested.
MCX Copper Tips-LME copper is predicted to narrowly range USD 4,650-4,700/mt during Asian trading hours Monday. Trading will mute this week ahead of Christmas holiday and year-end cash tightness in China. Base metals prices in China are expected to rebound, but any increases will be limited. GDP data from US, England and France will be announced this week, with US November durable goods orders also slated for release. US household consumption was weaker compared with employment numbers, so further interest rate hikes by the Fed are expected to be based on a gradual basis. The LME market will be closed until December 29 due to the Christmas holiday.
Crude oil prices-U.S. crude oil prices dipped in early Asian trading on Monday, heading towards last week's 2015 lows as a rebound in drilling activity, a strong dollar and brimming storage facilities weighed on prices. Analysts said a strong dollar following last week's U.S. interest rate hike, which makes oil consumption more expensive for countries using different currencies, as well as a renewed increase in U.S. oil rig counts were weighing on crude prices. The increase in rig count even in a low crude oil price environment suggests shale producers are committed to maintaining production levels.
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