Quote on Gold and Crude 11th June 2025 by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities
Below the Quote on Gold and Crude 11th June 2025 by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities
COMEX August gold futures closed 0.34% lower, settling just below $3,345 per ounce, as a stronger US dollar weighed on prices. Safe-haven demand also eased following positive signals from US-China trade talks, with President Trump stating the US is "doing well with China." However, geopolitical tensions remain high. Trump warned of increasing Iranian aggression in nuclear discussions, while Russia claimed control over territory in Ukraine’s east-central region. Today, gold prices have rebounded, trading above $3,360 per ounce. The uptick follows a US Court of Appeals decision allowing Trump-era tariffs to remain in place amid ongoing appeals. Market focus now shifts to upcoming US CPI data, which is expected to show inflation rising to 2.5% year-over-year, potentially intensifying concerns over the broader US economic outlook.
WTI crude oil reached a two-month high of $66.28 per barrel, supported by optimism surrounding US-China trade talks. Reports that President Trump may ease restrictions on chip exports in exchange for China relaxing its rare earth export policies have raised hopes for a potential trade agreement. Additionally, the EIA projected a decline in US crude production over the next 18 months, as lower prices prompt producers to scale back drilling activity. Despite these supportive factors, oil prices pulled back and closed below $65 per barrel, as markets awaited concrete outcomes from the second day of trade negotiations. Today, WTI prices holds steady near $65 per barrel as traders digest limited details from the preliminary US-China trade plan and a federal court ruling upholding Trump tariffs. Meanwhile, the World Bank has lowered its global growth forecast for 2025, citing elevated tariffs and persistent policy uncertainty as major headwinds. Still, downside risks may be limited ahead of the EIA report, especially after the API reported a draw of 370,000 barrels for the week ending June 7
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