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

COMEX August gold futures slipped to $3,362 per ounce on Thursday, retreating from a four-week high as the US dollar rebounded from a six-week low. The dollar’s strength was supported by easing US-China trade tensions following a phone call between Presidents Trump and Xi. Also, US trade deficit narrowed to a 20-month low in April and hawkish comments from Federal Reserve officials indicated that interest rates would likely remain steady also supported the greenback. However, the dollar softened later due to an unexpected rise in US jobless claims and remarks from ECB President Christine Lagarde suggesting the European Central Bank is approaching the end of its policy tightening cycle. Today, gold is trading near $3,390 as investors remain cautious ahead of the Nonfarm Payrolls report, with expectations of 130,000 new jobs and a steady 4.2% unemployment rate.

WTI crude oil prices surged to $64 per barrel following a telephone conversation between US President Donald Trump and Chinese President Xi Jinping on Thursday. The leaders discussed efforts to resolve trade disputes and agreed to continue trade negotiations, boosting market sentiment. Earlier in the session, oil prices dipped to $62.5 per barrel amid concerns over a potential production increase by OPEC+ at its July meeting and a sharp rise in US refined product inventories. Today, WTI crude holds above $63 per barrel, supported by optimism surrounding US-China trade talks and heightened geopolitical tensions after Russia launched drone and ballistic missile strikes on multiple targets in Ukraine in retaliation for a recent Ukrainian assault.