Gold futures inch higher; BoJ, Euro group meeting eyed

Gold futures inched higher during European morning hours on Monday, as market players looked ahead to a meeting of euro zone finance ministers later in the day, while awaiting the conclusion of Tuesday’s Bank of Japan policy meeting.

Ongoing worries over the U.S. debt ceiling debate also remained in focus.

Trade was expected to remain subdued on Monday, as floor trading on the Comex was to remain closed for the Martin Luther King Jr. holiday.

Expectations for more aggressive stimulus measures by the Bank of Japan underpinned sentiment.

The BoJ was widely expected to implement more aggressive easing measures and adopt a 2% inflation target in response to growing political pressure from the government of Prime Minister Shinzo Abe to step up efforts to combat deflation.

Expectations of monetary stimulus tend to benefit gold, as the precious metal is seen as a safe store of value and a hedge against inflation.

Later in the day, the Eurogroup of euro zone finance ministers was to hold talks to discuss how the euro zone’s permanent bailout fund, the European Stability Mechanism can provide direct aid to banks.

On Friday Jean-Claude Juncker, the outgoing chairman of the Eurogroup endorsed Dutch Finance Minister Jeroen Dijsselbloem as a "good" candidate to take over his job.

The appointment will be closely watched as the head of the Eurogroup plays a vital role forming a policy response to the debt crisis.
Gold traders continued to monitor political developments in the U.S., amid growing uncertainty over how the country will tackle the upcoming USD16.4 trillion debt ceiling debate.

U.S. Republicans said Friday they would hold a vote this week to grant a three-month debt limit extension to give Congress more time to pass a federal budget.

Failing to raise the debt ceiling by the end of February could lead to a first-ever U.S. default that could roil financial markets.

Crude oil eases off 4-month high with debt ceiling talks in focus

Crude oil futures edged lower in quiet trade during European morning hours on Monday, moving away from last week’s four-month high as ongoing worries over the U.S. debt ceiling debate dampened appetite for riskier assets.


Trade was expected to remain subdued on Monday, as floor trading on the NYMEX was to remain closed for the Martin Luther King Jr. holiday.
Oil traders continued to monitor political developments in the U.S., amid growing uncertainty over how the country will tackle the upcoming USD16.4 trillion debt ceiling debate.
House Republicans said Friday they would hold a vote on January 23 to grant a three-month debt limit extension to give Congress more time to pass a federal budget.

Failing to raise the debt ceiling by the end of February could lead to a first-ever U.S. default that could roil financial markets and weigh on demand for oil.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.

Meanwhile, investors were jittery as the euro group of euro zone finance ministers was to hold talks to discuss how the euro zone’s permanent bailout fund, the European Stability Mechanism can provide direct aid to banks.

On Friday Jean-Claude Juncker, the outgoing chairman of the eurogroup endorsed Dutch Finance Minister Jeroen Dijsselbloem as a "good" candidate to take over his job.

The appointment will be closely watched as the head of the eurogroup plays a vital role forming a policy response to the debt crisis.

Copper lower with E.Z. meeting, debt ceiling talks in focus

Copper futures were lower in subdued trade during European morning hours on Monday, as market players looked ahead to a meeting of euro zone finance ministers later in the day.

Ongoing worries over the U.S. debt ceiling debate also remained in focus.

Trade was expected to remain subdued on Monday, as floor trading on the Comex was to remain closed for the Martin Luther King Jr. holiday.
Copper traders continued to monitor political developments in the U.S., amid growing uncertainty over how the country will tackle the upcoming USD16.4 trillion debt ceiling debate.
House Republicans said Friday they would hold a vote on January 23 to grant a three-month debt limit extension to give Congress more time to pass a federal budget.

Failing to raise the debt ceiling by the end of February could lead to a first-ever U.S. default that could roil financial markets and weigh on demand for oil.

Meanwhile, investors were jittery as the euro group of euro zone finance ministers was to hold talks to discuss how the euro zone’s permanent bailout fund, the European Stability Mechanism can provide direct aid to banks.

On Friday Jean-Claude Juncker, the outgoing chairman of the eurogroup endorsed Dutch Finance Minister Jeroen Dijsselbloem as a "good" candidate to take over his job.

The appointment will be closely watched as the head of the eurogroup plays a vital role forming a policy response to the debt crisis.