Evening Track : Comex gold drops after hitting all-time high on profit taking by Kotak Securities Ltd
Comex gold futures experienced a pullback from their record high of $3371.9 per ounce on Thursday as investors engaged in profit-taking. This followed a significant rally fueled by concerns over Trump's new tariff policies. The price had earlier reached another all-time peak due to Federal Reserve Chief Jerome Powell's warnings about the adverse effects of the trade war, which triggered volatility in Wall Street, causing declines in both stocks and the U.S. dollar. Market sentiment was further impacted by fluctuating tariff-related news, while Powell's indication that the Fed would not swiftly intervene to support investors highlighted the uncertainty stemming from Washington's trade announcements. His comments showed officials are in no hurry to change the central bank’s benchmark policy rate. Notably, Swiss gold exports to the U.S. saw a 32% decrease in March, although they remained at a historically high level of 103.2 tons, valued at approximately $11 billion.
WTI crude oil futures edged higher on Thursday, trading at $62.45 per barrel and poised for their first weekly gain in three weeks following new U.S. sanctions on Iranian oil exports. Supply concerns intensified as OPEC+ members, including Iraq and Kazakhstan, submitted updated plans to cut output to offset previous overproduction. However, demand-side risks persist, with Fed Chair Jerome Powell cautioning that tariffs could drive consumer prices higher and limit monetary policy flexibility. According to the EIA, U.S. crude inventories rose by 600,000 barrels to 442.9 million, while production declined by 27,000 bpd to 13.52 million bpd. Imports and exports increased, and gasoline and distillate stockpiles dropped by 2 million and 1.9 million barrels, respectively.
LME base metals trade lower, with copper leading the decline, down 0.50% to $9,153/ton, as trade tensions and policy uncertainty weighed on sentiment. The U.S. copper industry urged the White House to restrict exports of ore and scrap instead of taxing imports, while markets reacted to fresh tariff threats of up to 245% on some Chinese goods. Fed Chair Powell warned that more tariffs could fuel inflation and stall growth, as the Fed holds off on rate cuts. Although talks with Japan showed progress, and China signaled openness to renewed dialogue, uncertainty lingers. Zinc prices fell further on surging inventories, while aluminium hovers near multi-month lows on bleak manufacturing outlooks.
European natural gas futures are trending towards their first weekly gain in four weeks, currently up about 6% primarily driven by concerns over a tightening Asian market, which could intensify competition for LNG shipments. Supply disruptions in key exporting nations like Malaysia, Australia, and Brunei are reducing gas flows. Simultaneously, forecasts predict a hot summer in Asia, potentially boosting demand for cooling. This situation, coupled with a recovery in oil prices, has provided upward support for European gas prices.
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