Daily Evening Track : Gold rebounds as investors eye jobs data by Kotak Securities
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Comex Gold futures gained ground to trade above $ 2,660 per ounce ahead of the crucial US jobs report that will significantly impact the Federal Reserve's interest rate policy. The upcoming nonfarm payrolls data, due later today, will be closely watched by market participants before the Fed's policy meeting on December 17-18. While market expectations currently point to a 25 basis point rate cut, robust labor market data could temper the central bank's inclination towards aggressive monetary easing in the coming year.
WTI Crude oil prices declined early Friday to trade near $68 per barrel due to concerns over weak global demand. OPEC+ has further delayed planned output increases, opting for a more gradual approach to unwinding production cuts over 18 months. While geopolitical tensions have provided some bullish momentum, expectations of a 2025 supply glut and sluggish Chinese demand are weighing on prices. The cartel's limited capacity to restore withheld production since 2022 further contributes to the bearish sentiment.
LME Copper is poised for its strongest weekly performance since September as market sentiment improves on expectations of Chinese economic stimulus. Investors anticipate further policy measures to be announced at the upcoming Central Economic Work Conference and the Politburo meeting. While a strong dollar and Chinese demand concerns had previously weighed on copper prices, recent focus has shifted to supply-side issues. Record-low annual processing fees could potentially hinder refined copper production, adding upward pressure to prices. LME Copper is trading 0.50% higher at $9,124 per ton while LME Zinc and Aluminium is trading lower by over 0.50%.
European natural gas prices declined by 1.4% on Friday, poised for a weekly loss of over 3%. This downturn follows Russia's adjustment to its gas payment procedures, alleviating fears of supply disruptions. The revised payment method mitigates the impact of US sanctions on Gazprombank. Additionally, increased LNG imports and favourable weather conditions, characterized by mild temperatures and strong winds, contribute to a more relaxed supply outlook for Europe.
Investors focus will now shift Non-farm Payrolls and UoM Consumer sentiments to be released today
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