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Below the Perspective by Ms.Riya Singh – Research Analyst, Commodities and Currency , Emkay Global Financial Services Ltd

The US Dollar strengthened following a Federal Reserve meeting that tempered expectations for rate cuts amidst mixed economic signals. Despite softer US inflation data, the Fed's projection of fewer rate cuts weighed on silver prices, which fell sharply. Gold prices remained under pressure due to a stronger dollar and reduced prospects of US interest rate cuts, though supported by geopolitical tensions.  Crude oil prices were poised for a weekly gain despite conflicting signals from OPEC and the IEA regarding global demand and supply dynamics. The Euro ended the week flat against the dollar amid uncertainty surrounding European elections and recent rate cuts by the ECB. Copper saw its first weekly gain in four weeks, driven by signs of recovering Chinese demand following recent declines fueled by concerns over global inventories.  In the energy sector, natural gas prices in the US rose on increased consumption and imports, with inventories remaining above average levels.  Meanwhile, the Indian Rupee faced challenges from a strengthening dollar after softer US inflation data, though interventions by the RBI helped prevent a decline towards record lows. Despite persistent inflation pressures, India's consumer inflation for May showed some moderation, setting the stage for potential rate cuts by the RBI in the coming months.

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