Quote on Gold and Crude 09th October 2025 by Kaynat Chainwala, AVP Commodity Research, Kotak Securities
Below the Quote on Gold and Crude 09th October 2025 by Kaynat Chainwala, AVP Commodity Research, Kotak Securities
Spot gold surged to a new record high of $4,059.30 per ounce on Tuesday, extending its rally driven by safe-haven bids amid the prolonged U.S. government shutdown and expectations of imminent U.S. rate cuts. Heightened concerns over fiscal strain and employment further reinforced the dovish tone of the latest FOMC minutes, which suggest continued rate cuts amid labor market fragility and persistent inflation pressures. Investors have continued to add to their gold ETF holdings, contributing 14.5 tonnes so far in October following their largest monthly inflow of 146 tonnes in September. Today, spot gold initially eased to $4,001 per ounce, pausing its record-breaking rally amid profit-taking and easing geopolitical tensions after President Trump announced a preliminary Israel-Hamas peace deal confirmed by all parties. However, prices have since recovered and are now trading above $4,040 per ounce as traders await Fed Chair Powell’s remarks for further guidance on monetary policy, following indications from the FOMC minutes that most Fed officials expect further policy easing.
WTI crude oil briefly rose to a one-week high of $62.9 per barrel yesterday, buoyed by a mixed U.S. inventory report and fading prospects for a Russia-Ukraine peace deal. According to the latest EIA data, U.S. crude inventories increased by 3.7 million barrels to 420.3 million barrels in the week ending October 3. However, stocks at Cushing, Oklahoma, the delivery hub for NYMEX crude futures, declined by 760,000 barrels to 22.7 million barrels, indicating tighter supply at a key storage site. Refined product data pointed to strong demand, with gasoline inventories falling by 1.6 million barrels and distillate stockpiles down by 2 million barrels. Geopolitical tensions added to the bullish tone after a top Russian diplomat reportedly said the impetus to secure a peace deal with Ukraine, following the Trump-Putin summit in August, had largely dissipated. Today, WTI crude prices slipped below $62 per barrel earlier in the session as geopolitical risk premiums eased following an agreement between Israel and Hamas on a pause in fighting and a hostage-for-prisoners exchange.
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