Commodity Capsule: Brent crude oil fell; gold inched lower; copper slips | Watch video

Commodity Capsule: Oil prices fell on Monday, extending losses from the previous session.

The dollar rose amid market concerns that higher-than-expected inflation could delay cuts to high US interest rates that have been capping global fuel demand growth.

May Brent crude fell to $80.50 a barrel. US WTI futures declined to $76.14 a barrel as the US dollar strengthened.

Brent declined about 2 per cent and WTI fell more than 3 per cent on indications that US interest rate cuts could be delayed by two months.

Geopolitical risk premium from Yemeni Houthis' attacks on ships in the Red Sea remained modest at only a $2 a barrel boost to Brent-- Goldman Sachs.

Goldman Sachs has raised its summer peak price to $87 a barrel, up from $85. The bank still expects oil demand to grow by 1.5 million bpd in 2024.

Gold prices inched lower on Monday pressured by a gaining U.S. dollar

Bullion's losses were cushioned as growing tensions in the Middle East supported safe-haven near last session's over two-week highs.

US gold futures edged lower to $2,042/ounce.

The dollar was on the front foot ahead of a packed week filled with key economic releases that will provide further clues on the global interest rate outlook, with the US inflation reading taking centre stage.

Market participants' focus is now shifting to the Fed's preferred inflation indicator, personal consumption expenditure data, which is due on Thursday.

Last week, Fed Governor Christopher Waller said he was in "no rush" to cut rates, firming investor bets against US interest rate cuts before June.

Fed official sees US central bank on track to cut interest rates "later this year" despite stronger-than-expected inflation and labour market data in January.

London copper opened the week lower on Monday, under pressure from a firmer US dollar ahead of key economic data, while higher inventories in China weighed.

Copper on the London Metal Exchange slipped to $8,534/metric ton. March copper contract Shanghai Futures Exchange slid to 69,100 yuan per ton.

The dollar has recovered edging close to 104 level, ahead of a week packed with key economic releases.

Investor focus shifted toward inflation data from the United States, Japan, and Europe which will help refine expectations for future rate moves.

Deliverable copper stocks on SHFE after the Lunar New Year holiday scaled 181,323 tons, at a near one-year high. Meanwhile, post-holiday demand is yet to pick up.

China's new home prices extended declines in January, data showed on Friday, despite Beijing's support to restore confidence in the debt-ridden property sector.

Iron ore futures on Dalian and Singapore Exchange fell up to 3.5 per cent to near four-month lows amid higher Chinese inventories and slow construction.

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