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Below the Quote on Gold and Crude 01st September 2025 by Kaynat Chainwala, AVP - Commodity Research, Kotak Securities 

Spot gold surged to $3,453/oz on Friday as markets closely watched a federal court hearing where Trump urged a judge to deny Fed Governor Lisa Cook’s appeal to remain on the Federal Reserve Board. The hearing concluded without an immediate ruling. This unprecedented legal challenge, coupled with renewed geopolitical tensions, fueled a sharp rally in precious metals. Safe-haven demand intensified as Britain, France, and Germany warned Iran of potential renewed U.N. sanctions over its nuclear activities. Meanwhile, France and Germany also called for secondary sanctions on countries supporting Russia’s military efforts in Ukraine. Today, spot gold extended its rally to $3,475/oz, buoyed by increasing expectations of a September rate cut, growing uncertainty around Trump’s proposed tariffs, and the escalating standoff between the Fed and the Trump administration. San Francisco Fed President Mary Daly signaled that policymakers may be ready to lower interest rates soon, noting that inflation driven by tariffs is likely to be temporary. Meanwhile, political and trade uncertainty lingers a U.S. court ruled that Trump’s sweeping trade tariffs were illegal, while a decision on whether Lisa Cook can continue her Fed duties is not expected before at least Tuesday.

WTI crude oil closed the week above $64/bbl, marking a second consecutive weekly gain, as markets weighed growing U.S. pressure on India to halt Russian oil imports, a larger-than-expected drawdown in U.S. crude inventories, and escalating attacks on energy infrastructure in the Russia-Ukraine conflict. Oil prices edged lower today and may remain volatile ahead of a meeting between Indian Prime Minister Narendra Modi and Russian President Vladimir Putin at the SCO summit in China. Markets are also focused on the upcoming OPEC+ meeting on September 7, amid rising speculation that the group may discuss unwinding the 1.65 million barrels per day of output cuts. Fading U.S. summer driving demand, intensified Russia-Ukraine airstrikes and the prospect of increasing supply as OPEC+ gradually rolls back production cuts could complicate oil’s price trajectory in the near term.

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