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Below is perspective on Crude Oil and Gold commentary By Mr. Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services

Perspective on Crude Oil:

“Crude rose to the highest level in more than seven years on fears that possible invasion of Russia in Ukraine could trigger US and European sanctions. Joe Biden's National Security Adviser Jake Sullivan said an invasion could begin "any day now" and that is extending gains for the commodity. More clarity during the week will be needed and volatility could remain elevated for the energy complex. Increased uncertainty between Russia and Ukraine is expected to keep crude price supported at lower levels.”

Gold Commentary:

“Gold continue to inch higher and held their ground near a three month peak it touched in the previous session, as the concerns surrounding Ukraine kept the metal's safe-haven appeal intact. Expectations regarding Fed's aggressive policy tightening move in the march meeting after a 7.5% inflation which is at 40years highs and the U.S. 10Y yields hovering around 2% capped some gains for the metal. Although the inflationary concerns with the rising Russia-Ukraine tussle influenced market participants to shift from riskier assets to safe haven assets. Russia could create a surprise pretext for an attack, the U.S. said on Sunday. However, Moscow denies any such plans and has accused the West of "hysteria", even as it has more than 100,000 troops massed near Ukraine. U.S. consumer sentiment fell to its lowest level in more than a decade in early February amid expectations that inflation would continue to increase in the near term. Market participants will keep an eye on the inflation data on domestic front and speech from ECB Gov. Lagarde. and Fed official Bullard. Broader trend on COMEX could be in the range of $1830- 1875 and on domestic front prices could hover in the  range of Rs 49,100- 49,900.”

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