5 things to watch on the ASX 200 on Monday

The ASX 200 is expected to start the week positively.

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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small gain. The benchmark index rose 0.2% to 7,040.8 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 to rise again

The Australian share market looks set to open the week higher following a relatively positive finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.2% higher on Monday. In the United States, the Dow Jones was up 0.3% and the S&P 500 rose 0.1%, but the NASDAQ fell 0.1%.

Oil prices tumble

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could start the week in the red after oil prices fell on Friday night. According to Bloomberg, the WTI crude oil price was down 2% to US$75.54 a barrel and the Brent crude oil price was down 1% to US$80.58 a barrel. Traders were selling oil after OPEC postponed its meeting.

Iron ore softens

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares could have a subdued session. On Friday night the mining giants' shares fell on Wall Street after iron ore prices softened on both the SGX and Dalian Exchange.

Allkem rated as a buy

Allkem Ltd (ASX: AKE) shares are in the buy zone according to Goldman Sachs. In its most recent lithium industry review, the broker has reaffirmed its buy rating and $10.90 price target. This implies a potential upside of 29% for investors. Goldman remains positive on Allkem despite forecasting a sharp decline in lithium prices in 2024.

Gold price rises

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a solid start to the week after the gold price pushed higher on Friday. According to CNBC, the spot gold price was up 0.5% to US$2,023.5 an ounce. A weaker US dollar due to rate hike pause hopes boosted the precious metal.

Motley Fool contributor James Mickleboro has positions in Allkem. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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