Morning Call For Monday, Dec. 10

Feb gold this morning is down 1.5 (-0.12%), March silver is down -0.086 (-0.59%), and March copper is down -0.024 (-0.87%) on the mildly stronger dollar. Friday's closes: Feb Comex gold (GCG19) on Friday closed up +9.0 (+0.72%) and Mar Comex silver (SIH19) closed up +0.187 (+1.29%). Feb gold on Friday climbed to a 4-1/2 month high due to a weaker dollar and after the weaker-than-expected U.S. Nov non-farm payroll report of +155,000 (vs expectations of +198,000) bolstered speculation the Fed will pursue a slower pace of interest rate hikes. Gains in gold were contained after a rally in equities reduced safe-haven demand for gold. Gains in silver were limited by fund selling after long silver positions in ETFs fell to a 3-1/2 week low of 527.961 mln troy ounces on Thursday.

Jan WTI crude oil prices are down -0.88 (-1.67%) and Jan gasoline is down -0.89 (-1.44%) as support fades from last Friday's OPEC+ agreement to cut 2019 oil production by 1.2 million bpd. Friday's closes: Jan WTI crude oil (CLF19) on Friday closed up sharply by +$1.12 per barrel (+2.18%) and Feb Brent crude (CBG19) closed up +$1.37 (+2.28%). Jan RBOB gasoline (RBF19) closed up by +5.24 cents per gallon (+3.66%). The energy complex rallied sharply Friday with Jan gasoline at a 2-week high after OPEC+ agreed to a larger-than-expected cut in crude output. OPEC+ said at Friday's meeting in Vienna that they agreed to cut crude production by -1.2 million bpd, a bigger cut than the -1.0 million bpd cut in production proposed by Saudi Arabia. Crude prices also moved higher Friday on a weaker dollar and an increase in the crack spread to a 2-week high, which boosts the incentive for refiners to purchase crude to refine into gasoline. Crude prices also have support from Thursday's weekly EIA data that showed U.S. crude inventories plunged by -7.23 million bbl, a much bigger than decline than expectations of -2.0 million bbl.

Overnight U.S. Stock Movers

Facebook (FB -1.58%) gained more than 1% in after-hours trading when it announced a new $9 billion stock buyback program.

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