Gold prices gained in Asia on Monday with the stage set this week - 19 Sep 2016
Gold prices gained in Asia on Monday with the stage set this week for the latest Federal Reserve review on rates and on the same day the Bank of Japan expected to detail results of a review on its easing policies.Gold for December delivery on the Comex division of the New York Mercantile Exchange rose 0.28% to $1,313.85 a troy ounce. Also on the Comex, silver futures for December delivery inched up 0.08% to $18.877 a troy ounce.Financial markets in Tokyo are shut Monday for a holiday. Last week, gold prices slumped to a more than two-week low on Friday, as a broadly stronger U.S. dollar and jitters ahead of next week's highly anticipated Federal Reserve policy meeting weighed.
LME copper is predicted to keep testing support at the 40-day moving average and will range between USD 4,730-4,770/mt on Monday. SHFE 1611 copper is expected to move at RMB 37,000-37,400/mt today. Eyes will be on September manufacturing PMI from each country and US Fed September rate meeting this week.Global major economies already reached consensus on not relying on monetary stimulus to avoid negative effect from the monetary policies, which came before US Fed September rate meeting. US Fed’s normalization of interest rate cannot just be limited to recovery in employment and control of inflation.
Oil prices rose almost 2 percent on Monday, after Venezuela said OPEC and non-OPEC producers were close to reaching an output stabilizing deal and as clashes in Libya raised concerns that efforts to restart crude exports could be disrupted. The rise in oil prices is a reaction to Venezuelan comments about producers reaching a possible output agreement, said Ric Spooner, CMC Markets' chief market analyst. Loading disruptions in Libya were also underpinning the market, Spooner added. Libya unable to get their first ship loaded is a reminder that it may be difficult for Libya to increase production.