Quote on Gold and Crude 2nd Sept 2025 by Kaynat Chainwala, AVP Commodity Research, Kotak Securities
Below the Quote on Gold and Crude 2nd Sept 2025 by Kaynat Chainwala, AVP Commodity Research, Kotak Securities
Spot gold surged to a four-month high of $3,489 per ounce on Monday, extending gains as expectations of U.S. Federal Reserve rate cuts and growing concerns about the Fed’s independence pressured the U.S. dollar to a one-month low of 97.5. The odds of a September rate cut have increased, supported by recent dovish remarks from San Francisco Fed President Mary Daly and Governor Christopher Waller. Adding to market uncertainty, a U.S. court has ruled President Trump’s trade tariffs illegal, though they will remain in effect until October 14. Meanwhile, a decision on Fed Governor Lisa Cook’s role is not expected until at least Tuesday, keeping institutional uncertainty in focus. Today, spot gold hit a record high of $3,508, buoyed by dovish Fed expectations and increased safe-haven demand amid ongoing legal, political, and geopolitical tensions.
Brent crude oil prices surged to $68.4 per barrel on Monday, while MCX crude oil futures closed above ?5,700 per barrel, driven by escalating Russia-Ukraine tensions. Ukraine is reportedly preparing for new strikes deep inside Russian territory in response to renewed Russian drone attacks on key power infrastructure in both northern and southern regions. Amid the intensifying conflict, U.S. Treasury Secretary Scott Bessent said Washington is considering tougher sanctions on Moscow this week. As a result, markets are now bracing for President Trump’s address later tonight, especially as the topic of the speech remains unclear, adding to geopolitical uncertainty. Oil prices climbed to $65 per barrel today on fears of supply disruptions from Russia. Attention is now turning to the upcoming OPEC+ meeting, where the group may begin discussions on gradually unwinding the current 1.65 million barrels per day of voluntary output cuts
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