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

Below the Quote on Gold and Crude by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities
Comex gold surged to $3,070.70 per ounce on Tuesday, supported by a weaker dollar, as US consumer confidence for March dropped to a four-year low, signaling concerns about the economy. Additionally, steady safe-haven demand amid global economic and geopolitical uncertainties continues to support gold prices. However, the sharp upside was capped as Federal Reserve officials maintained a cautious approach to policy due to ongoing economic uncertainty. Currently, gold is trading near $3,030, with markets closely awaiting the PCE data, the Fed's inflation outlook, and speeches from FOMC members for further guidance on policy direction.
WTI Crude oil closed yesterday with mild losses, snapping a four-day winning streak, as the Russia-Ukraine ceasefire agreement in the Black Sea eased concerns over supply disruptions. However, the Kremlin stated that its involvement in the deal would depend on several preconditions, including sanctions relief. This offset the impact of US secondary sanctions on Venezuelan oil, pulling prices down from a session high of $69.70 per barrel to close at $69 per barrel. Additionally, weak US economic data raised concerns about growth in the world’s largest oil consumer. Today, oil prices are trading above $69 per barrel, supported by an API report signaling a sharp drawdown in inventories. According to the API, US inventories fell by 4.6 million barrels in the week ending March 21, which, if confirmed by the EIA, would mark the largest draw since November.
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