Gold jewellery a poor investment, financial gold shines brighter: Kotak

Silver held around $58 per ounce on Monday, hovering near record highs as investors prepared for an expected interest rate cut from the US Federal Reserve this week.

However, the outlook for 2026 remains uncertain, with analysts expecting a “hawkish cut” in which Chair Jerome Powell could signal a cautious approach to further easing.

Markets also await policy decisions from central banks in Australia, Canada and Switzerland, although they are all expected to keep rates steady.

Silver surged to all-time highs last week, supported by low visible exchange inventories, renewed ETF accumulation, and expectations of another market deficit this year, highlighting tightening physical conditions.

Strong industrial demand from solar and other green technologies further underpins the medium-term case for higher prices.

Iron ore prices are lower in early Asian trade, with the most traded iron ore contract on the Dalian Commodity Exchange down 0.7% at CNY782.0 a ton. On the supply side, cumulative global iron ore shipments in 2025 continue to rise on year, while port inventories are also building, Nanhua Futures analysts say in a note. Yet, "with supply-chain tensions easing, steel mill margins improving, and rigid restocking demand for winter inventories strengthening, the downside for iron ore prices is expected to be limited," they add.(jason.chau@wsj.com)

Palm oil falls in early Asian trade due to softer soybean oil prices on the Chicago Board of Trade, says David Ng, a trader at Kuala Lumpur-based Iceberg X. The edible oils often move in tandem as they are used in similar products. Market sentiment is also being weighed by the Malaysian ringgit's recent strength, he says. Ng sees support for crude palm-oil futures at 4,050 ringgit a ton and resistance at 4,200 ringgit a ton. The Bursa Malaysia Derivatives contract for February delivery is 25 ringgit lower at 4,127 ringgit a ton.(amanda.lee@wsj.com)

Copper falls in Asian trade, with the three-month contract on the London Metal Exchange shedding 0.2% to $11,601.00/metric ton. While copper rallied to record highs last week, the base metal's prices are likely to ease next year, according to Capital Economics' Kieran Tompkins in a note. He says most of the "bad news" related to tightening supply--such as an expected modest fall in Chinese producers' output next year--have already been priced in. Demand for copper is likely to be downbeat, with the correction in construction activity related to China's property sector set to remain a headwind, the senior climate and commodities economist adds. (megan.cheah@wsj.com)

Crude palm oil prices are likely to ease slightly in 2026, say OCBC strategists in their 1H commodities outlook report. They note that Indonesia's production outlook was revised higher through 2H this year while fears about output disruptions in Malaysia due to heavy rains, have eased. Demand is likely to remain broadly supportive in early 2026, thanks to steady buying ahead of the Lunar New Year and Ramadan festive periods, before becoming more balanced in 2H next year. OCBC expects crude palm oil prices to average around 4,200 ringgit a metric ton in 2026, compared with the bank's estimate of 4,300 ringgit a ton in 2025. The Bursa Malaysia Derivatives contract for February delivery last ended 47 ringgit higher at 4,152 ringgit a ton. (megan.cheah@wsj.com)

Gold prices held near $4,200 per ounce on Monday, stabilizing after a weekly decline, as traders awaited the Federal Reserve’s final policy meeting of the year, where officials are widely expected to cut interest rates.

Mixed US employment data and core inflation in line with expectations have supported the case for additional easing.

Current market pricing implies an 88% probability of a 25bps cut in the 3.75% to 4.0% funds rate, with expectations of two more reductions next year.

Aside from the rate decision, traders will also scrutinize the Fed’s updated economic projections for 2026 and beyond.

Meanwhile, Tuesday’s JOLTS job openings report, the final labor market reading before the Fed’s announcement, will be closely watched.

Elsewhere, China’s central bank increased its gold reserves for the 13th consecutive month, bringing holdings to roughly 74.12 million troy ounces.