Quote on Crude and Gold 18th June 2025 by Kaynat Chainwala, AVP - Commodity Research, Kotak Securities
Below the Quote on Crude and Gold 18th June 2025 by Kaynat Chainwala, AVP - Commodity Research, Kotak Securities
Comex August gold futures jumped to $3,422.70/oz on Tuesday, supported by a risk-off mood after US President Trump called for a full evacuation of Tehran and then abruptly left the G7 Summit. Additionally, weak US retail sales and industrial production data suggested that the US economic momentum may be slowing, boosting expectations of Federal Reserve interest rate cuts. However, prices retreated from higher levels to close at $3,406.90/oz due to strength in the US dollar. Today, gold remained steady above the $3,400 mark as rising risks of a broader war in the Middle East continued to lend safe-haven support. Investors are also focused on today’s FOMC meeting. While the Fed is widely expected to keep interest rates unchanged, attention will be on its economic projections for forward guidance regarding the timing and extent of possible future rate cuts.
WTI crude oil surged to $75.5 per barrel yesterday following a significant escalation in the Israel-Iran conflict, renewing concerns over potential supply disruptions in the Middle East. Prices had previously pulled back on Monday, as the attacks had not affected any major oil supply routes and the Strait of Hormuz remained open. Besides, the IEA forecasts global oil demand to rise by 2.5 million barrels per day between 2024 and 2030, reaching a plateau of around 105.5 million barrels per day by the end of the decade. Today, August WTI crude oil futures steadied above $73.5 per barrel amid growing speculation that the US may join the conflict. This has heightened concerns about supply disruptions, with reports indicating that Iran has prepared missiles and other military assets for potential strikes on US bases in the Middle East if the US intervenes in the war. The API also reported a massive 10 million barrel draw in US crude oil inventories for the week ending June 13, adding to the bullish sentiment ahead of the EIA data
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