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Comex Gold takes a breather ahead of key events

Comex Gold futures held a two-day drop trading near $2,675 per ounce ahead of the Federal Reserve’s final interest-rate decision of the year, with traders also weighing the policy outlook for 2025. Last week's mixed economic data, including rising wholesale inflation and higher-thananticipated jobless claims, added to the uncertainty. The Fed is widely expected to reduce interest rates by 25 basis points this week, with further cuts anticipated over the next year. However, the World Gold Council has a more cautious outlook for gold in 2025. The council cites factors like central bank actions, geopolitical tensions, and economic conditions in major markets such as the U.S., China, and India as potential headwinds for gold growth.

WTI Crude oil futures Oil prices retreated to trade near $70.5 per barrel after last week gains as concerns over weakening Chinese demand resurfaced. China's November crude refining activity dipped to a five-month low, and apparent oil demand contracted by 2.1%. Additionally, retail sales growth fell short of expectations, further dampening the outlook for oil consumption in the world's largest importer.While oil prices initially edged higher after a report suggesting the US and its allies may lower the price cap on Russian crude, the broader market sentiment remained bearish due to China's economic slowdown.

LME base metals futures continued their downward trend primarily due to escalating concerns over weakening demand in China, the world's largest metals consumer. China Industrial production exceeded expectations while retail sales growth slowed more than anticipated. Additionally, the prolonged property downturn persisted, with new home prices declining for the 17th consecutive month in November. Despite Beijing's recent pledges for more proactive fiscal stimulus and looser monetary policy, investor sentiment remains cautious due to the lack of specific details fiscal details. LME Copper is trading flat near $9,058 per ton while Aluminium and Zinc is down more than 0.30%.

European natural gas fall by as much as 4.4% as it follows the largest weekly decline observed this year last week. Prices briefly dipped below the €40 per megawatt-hour mark for the first time since early November, as mild weather conditions and increased seaborne imports have alleviated concerns over supply shortages. Europe's natural gas inventories are just over 78% full, which is below the five-year average.

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