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 futures declined 0.6% on Monday, snapping a four-session winning streak, as market sentiment improved following President Trump’s decision to exempt smartphones, computers, and other electronics, primarily imported from China, from tariffs. However, losses were limited after U.S. Commerce Secretary Howard Lutnick announced that several key tech products currently exempt from the tariffs imposed since April 2 will soon face separate duties. Semiconductors, in particular, are expected to be targeted with new tariffs within the next one to two months. Additionally, Federal Reserve Governor Waller suggested that the inflationary impact of tariffs may be temporary and indicated that rate cuts could be considered in the latter half of 2025. Today, COMEX gold edged higher to $3,246 per ounce, trading near record highs amid lingering uncertainty over further tariff actions, as the Trump administration launched investigation into semiconductor and pharmaceutical imports
WTI crude oil surged to $62.70 per barrel on Monday as markets responded positively to Trump’s decision to delay import levies on certain consumer electronics. The rally was further supported by sustained weakness in the U.S. dollar and a strong rebound in Chinese crude oil imports, which rose to 51.41 million metric tons in March, equivalent to 12.1 million barrels per day, marking the highest level since August 2023. However, prices later retreated from their highs amid ongoing trade-related uncertainty and as OPEC revised its global oil demand growth forecasts for 2025 and 2026 lower by 150,000 barrels per day, to 1.3 million and 1.28 million bpd, respectively. Today, crude extended gains to $61.80 per barrel on improved risk appetite. However, sharp upside may be capped by prospects of increased Iranian crude supply, as the U.S. and Iran described their initial round of nuclear talks as "constructive" and confirmed a second round will take place later this week.
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