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Below the Quote on Gold and Crude by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities

COMEX Gold prices experienced significant volatility last week, retreating sharply from above $3500/oz to below $3300/oz as safe haven demand was hit by a more conciliatory tone from President Trump and U.S. Treasury Secretary Steven Mnuchin regarding China, as well as Trump's easing stance on Federal Reserve Chairman Jerome Powell. These developments helped stabilize investor sentiment, pushing the U.S. dollar higher toward the 100 mark. President Trump also hinted at the possibility of significantly reducing tariffs on Chinese goods. This optimism was tempered later when Mnuchin clarified that any tariff relief would require reciprocal action from China, helping gold prices to close the week above $3300/oz. Today, gold prices continue to fluctuate as signs of easing trade tensions counterbalance a softer dollar, fueled by expectations that the Federal Reserve may cut interest rates earlier than anticipated.

WTI Crude oil prices slipped to $61.5/bbl last week on oversupply concerns following Kazakhstan's initial decision to prioritize its national interests over OPEC+ agreements and speculation that several OPEC+ producers might push for increased output in June. However, oil prices recovered some ground, closing the week above $63/bbl and limiting the weekly decline to 2.6%, supported by positive trade signals, significant draws in refined product inventories, and renewed geopolitical tensions after Russia launched missile and drone strikes on Kyiv. Today, oil prices edged higher to $63.9/bbl, buoyed by hopes of more stimulus from China, as Chinese officials reiterated their plans to strengthen economic support in response to the impact of record U.S. tariffs. However, the upside may be capped by the potential for a Russia-Ukraine truce and signs of progress in talks over Tehran's nuclear program, which could unlock additional oil supply.