Quote on Gold and Crude 13th June 2025 by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities
Below the Quote on Gold and Crude 13th June 2025 by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities
Comex August gold futures rose 1.8% on Thursday, closing above $3,400 for a second consecutive session, as renewed tariff threats from President Trump heightened trade uncertainty and boosted demand for safe-haven assets. Further support came from a weakening US dollar, which fell to a three-year low amid subdued inflation data and signs of labor market softness, increasing expectations that the Federal Reserve may consider cutting interest rates. The US Producer Price Index (PPI) for May rose just 0.1%, below expectations, following similarly soft CPI data. Weekly jobless claims also remained elevated, exceeding 240,000 for the second straight week. On the trade front, the US and China have reportedly reached a tentative framework agreement, pending formal approval from both President Trump and President Xi. Gold extended its rally today, climbing above $3,460, as geopolitical tensions intensified following an Israeli strike on Iran. Markets are now focused on the upcoming University of Michigan Consumer Sentiment report, particularly the inflation expectations component, for further policy guidance.
WTI crude oil prices closed below $68 per barrel on Thursday as markets weighed rising trade tensions and growing instability in the Middle East. Earlier in the session, prices had touched a two-month high of $69.29 after the US began withdrawing personnel from the region, underscoring heightened geopolitical risk. Today, oil prices surged as much as 12% to $77.62 per barrel, marking the largest single-day gain since May 2020. The sharp rally followed Israel’s targeted strike on Tehran’s nuclear and ballistic missile facilities, significantly increasing the risk of Iranian retaliation. Fears of a potential closure or limiting passage through the Strait of Hormuz, a critical oil transit chokepoint that handles nearly 20% of global oil flows, have raised concerns over major supply disruptions
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