Quote on Gold and Crude 24th Sept 2025 by Kaynat Chainwala, AVP Commodity Research, Kotak Securities
Below the Quote on Gold and Crude 24th Sept 2025 by Kaynat Chainwala, AVP Commodity Research, Kotak Securities
Spot gold surged to a fresh record of $3,791.1/oz on Tuesday driven by reports that China is positioning itself as a custodian of foreign sovereign gold reserves and growing expectations of more rate cuts in 2025. NATO’s warning to Russia over airspace violations, strong ETF inflows, and concerns over Federal Reserve independence also underpinned gold. However, prices saw a modest pullback to $3,751/oz before closing at $3,764/oz following remarks from Fed Chair Powell, who cited that rising downside risks to employment outweigh concerns over stubborn inflation, prompting a decision to cut rates in September and marking a shift toward a more neutral policy stance. Powell acknowledged inflation remains elevated but suggested tariff-related pressures could be short-lived, reinforcing the Fed’s data-dependent approach. Today, gold fell below $3,760 earlier as investors booked profits after the record high, though prices have since edged higher and currently trade above $3,770 as markets assess Powell’s cautious stance and await key U.S. inflation and jobs data.
WTI crude oil rebounded sharply to $63.9/bbl on Tuesday after four consecutive sessions of declines, supported by delays in restarting oil exports from Iraqi Kurdistan and renewed geopolitical tensions. A deal to resume Kurdistan’s oil exports, which could add around 230,000 barrels per day to the global market via Turkey, stalled as two producing companies sought guarantees for debt repayment. Additionally, in a speech at the UN General Assembly, President Trump criticized NATO for continuing energy purchases from Russia and singled out China and India as the primary funders of Russia’s war in Ukraine. Today, oil prices are holding gains as traders await the EIA inventory report, following API data that estimated a 3.8 million barrel drop in U.S. crude stocks for the week ending September 19. Markets are also watching for Trump’s meetings with leaders from Ukraine, Argentina, and the EU later this week in New York, where he stated he would pressure the EU to immediately stop buying Russian gas and LNG.
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