Gold Edges Higher On Dollar Weakness Ahead Of Fed Meeting

Palm oil closed lower, likely dragged by lingering concerns over rising Malaysian inventories amid a seasonal demand slowdown, Kenanga Futures said in a note. Potential profit-taking after a recent rally may have also weighed on CPO prices, it added. Kenanga Futures pegs support and resistance for the February futures contract at 4,080 ringgit a ton and 4,195 ringgit a ton, respectively. The Bursa Malaysia Derivatives contract for February delivery closed 58 ringgit lower at 4,094 ringgit a ton. (amanda.lee@wsj.com)

WASHINGTON (dpa-AFX) - Oil prices dipped on Monday but held near two-week highs after U.S.-Russia talks failed to find a breakthrough.

Investors also expect a Federal Reserve rate cut on Wednesday could help boost economic growth and energy demand.

Benchmark Brent crude futures slipped 0.3 percent to $63.54 a barrel while WTI crude futures were down 0.3 percent at $59.91.

Both benchmarks settled on Friday at their strongest levels since November 18 as geopolitical risks threatened crude supplies from Russia and Venezuela.

As U.S.-Ukraine peace talks stall, U.S. President Donald Trump signaled frustration with Kyiv's response to recent diplomatic outreach.

On Sunday, Trump said, 'I have to say that I'm a little bit disappointed that President Zelensky hasn't yet read the peace proposal' to end the Ukraine-Russia war.

Trump's eldest son suggested that the president would abandon Ukraine if they don't make peace with Russia.

Speaking at the Doha Forum, Donald Trump Jr. claimed Ukraine was 'a far more corrupt country than Russia' and described Ukrainian President Volodymyr Zelensky as 'one of the great marketers of all time.'

Meanwhile, Reuters reported that the Group of Seven countries and the European Union are considering replacing the oil price cap on Russian oil exports with a full ban on maritime services, which would likely further curb supply from the world's second-largest oil producer.

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Gold's outlook for 2026 is likely defined by ongoing geoeconomic uncertainty, the World Gold Council says in a research note. Unexpected events, such as Trump's Liberation Day tariffs this year, are impossible to anticipate, they note, adding that the frequency of tail risk events is on the rise. The trade association thinks the forces of softer economic growth, accommodative policy and persistent geopolitical risks could support gold rather than undermine it. Investors will likely maintain some exposure to gold given the unpredictability of current geoeconomic dynamics. "In a world where shocks and surprises are increasingly the norm, gold's capacity to provide diversification and downside protection remains as relevant as ever," it adds. (sherry.qin@wsj.com)

Copper prices extend last week's gains, surging to fresh record highs on fears of global supply shortages. Futures on the London Metal Exchange rise 0.1% to $11,672.50 a metric ton, after reaching $11,771 a ton earlier in the trading session. "Supply shortages continue to spark panic buying," ANZ Research analysts say. A series of unplanned disruptions at major mines this year have strained the market. Meanwhile, further stockpiling in the U.S. due to concerns that the Trump administration could levy refined metal imports next year is raising the risk of shortages in other regions. Prices are also supported by China's pledge to lend more economic support to boost domestic demand, implementing "more proactive" fiscal policy and maintaining a "moderately loose" monetary stance, the analysts say. (giulia.petroni@wsj.com)

Gold prices slip in early trading but continue to be supported by expectations of a Fed interest-rate cut this week and a softer U.S. dollar. Futures in New York are down 0.1% to $4,237.90 a troy ounce, while spot gold is down 0.2% to $4,198.69 an ounce. The U.S. dollar index is down 0.1% to 98.93. Dovish comments from some Fed officials and the latest U.S. labor market data are supporting the case of a 25-basis-point rate cut this week--a scenario that typically benefits non-yielding bullion. However, traders are cautiously waiting for Fed Chair Jerome Powell's speech for more cues on the path ahead. "What happens next is the part no one agrees on," says Ipek Ozkardeskaya from Swissquote. "Some members worry that tariff-driven inflation could offset disinflationary forces and argue for caution." (giulia.petroni@wsj.com)

Oil prices steady as investors monitor geopolitical risks and expect the Federal Reserve to lower interest rates this week. Brent crude falls 0.2% to $63.64 a barrel, while WTI is down 0.1% to $60 a barrel after closing on Friday at their highest level in more than two weeks. A peace deal to end the war in Ukraine looks distant at the moment, while continued attacks on Russian energy infrastructure raise the risk premium, according to market watchers. Meanwhile, markets are pricing in an 86% chance of a quarter-point cut by the U.S. central bank. A lower-interest-rate environment typically supports economic activity and demand for commodities. (giulia.petroni@wsj.com)