Oil prices rise as markets eye OPEC, non-OPEC production cuts- SapForex24

Oil prices rose in the first trading hours of 2017, buoyed by hopes that a deal between OPEC and non-OPEC members to cut production, which kicked in on Sunday, will be effective in draining a global supply glut.

International Brent crude oil prices (LCOc1) were up 16 cents, or 0.3 percent, at $56.98 a barrel at 0802 GMT on Tuesday - close to last year's high of $57.89 per barrel, hit on Dec. 12. Oil markets were closed on Monday after the New Year's holiday.

U.S. benchmark West Texas Intermediate (WTI) (CLc1) crude oil prices were up 22 cents, or 0.41 percent, at $53.94 a barrel, not far from last year's high of $54.51 reached on Dec. 12.
Jan. 1 marked the official start of the deal agreed by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day.

Market watchers said January will serve as an indicator for whether the agreement will stick.
"Markets will be looking for anecdotal evidence for production cuts," said Ric Spooner, chief market analyst at Sydney's CMC Markets. "The most likely scenario is OPEC and non-OPEC member countries will be committed to the deal, especially in early stages."

Libya, one of two OPEC member countries exempt from cuts, increased its production to 685,000 barrels per day (bpd) as of Sunday, up from around 600,000 a day in December, according to an official from the National Oil Corporation (NOC).

Elsewhere, non-OPEC Middle Eastern oil producer Oman told customers last week that it will cut its crude term allocation volumes by 5 percent in March.

Non-OPEC member Russia's oil production in December remained unchanged at 11.21 million bpd, still near a 30-year high, but it was preparing to cut output by 300,000 bpd in the first half of 2017 in its contribution to the production cut accord.

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Gold prices inched up during Europe's session on Thursday, but remained near a one-week low as market players looked ahead to more U.S. economic data for clues on the likelihood of a December rate hike.

Comments from a barrage of Federal Reserve officials, including the Fed chair, later in the session will also be in focus.

Gold for December delivery on the Comex division of the New York Mercantile Exchange tacked on $1.60, or 0.12%, to $1,325.30 a troy ounce by 4:20AM . On Wednesday, prices fell to $1,321.10, a level not seen since September 21.

A handful of Fed policymakers are also due to make public appearances on Thursday that may offer insight into how divided they are about raising rates.

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Philadelphia Fed President Patrick Harker, Atlanta Fed President Dennis Lockhart, Fed Governor Jerome Powell, Minneapolis Fed President Neel Kashkari and Kansas City Fed President Esther George are all scheduled to speak during the day.

Yellen told Congress on Wednesday that the central bank does not have a "fixed timetable" for modifying its monetary policy. However, she added that continued job creation at its current pace would cause the economy to overheat and, in that case, the Fed could be forced to raise rates faster than expected.

Markets are currently pricing in around a 57% chance of a rate hike at December's meeting, according to Investing.com's Fed Rate Monitor Tool.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

In the currency market, the U.S. dollar index, which measures the greenback's value against a basket of six major currencies, was up 0.1% at 95.41 early Thursday.

Against the yen, the dollar climbed 0.8% to 101.50, extending its rebound from one-month low of 100.06 touched last week.

Gold pushes higher on bets for steady Fed - SapForex24

Gold prices were higher during Europe's session on Monday, bouncing off a more than two-week low as investors looked ahead to this week's highly anticipated Federal Reserve policy meeting.
Gold for December delivery on the Comex division of the New York Mercantile Exchange tacked on $9.85, or 0.75%, to trade at $1,320.05 a troy ounce by 3:59AM ET (07:59GMT). On Friday, prices slumped to $1,309.20, the lowest since September 1.

The Federal Reserve is not expected to take action on interest rates at the conclusion of its two-day policy meeting at 2:00PM ET (18:00GMT) on Wednesday. The central bank will also release its latest forecasts for economic growth and interest rates.

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Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed's statement, as investors look for any change in tone about the economy or future rate hikes.

Speculation about the timing of the Fed's next interest rate hike has been in focus this month following contrasting comments from top Fed officials in recent weeks.

Markets are currently pricing in just a 15% chance of a rate hike this week, according to Investing.com's Fed Rate Monitor Tool. For December, odds stood at around 54%.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 95.85 early Monday, down 0.2%.

Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

The market is also waiting for the outcome of a Bank of Japan policy meeting, which also meets on September 20-21, for trading cues.

Elsewhere on the Comex, silver futures for December delivery jumped 33.1 cents, or 1.75%, to trade at $19.18 a troy ounce during morning hours in London, while copper futures eased down 0.8 cents, or 0.37%, to $2.152 a pound.