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

COMEX Gold prices rose more than 1% on Wednesday, taking cues from mixed US economic data and Bank of Canada rate cut. Data released yesterday showed that the US services sector expanded in May by the most in nine months, powered by the largest monthly gain in a measure of business activity since 2021. At the same time, ADP employment data showed private businesses in the US added 152K workers to their payrolls in May, the least in four months, and well below forecasts of 175K and a downwardly revised 188K in April. Now the focus will be on the official NFP data due tomorrow. For the day, US weekly jobless claims and ECB policy meeting will be in spotlight.

WTI Crude oil futures edged higher on Wednesday after continuously falling for the prior five days despite unexpected rise in crude stocks. EIA inventory data released yesterday showed that stocks of crude oil in the US rose by 1.233 million barrels during the previous week, while gasoline stocks surged by 2.102 million barrels and distillate stockpiles soared by 3.197 million barrels. Oil prices came under pressure at the start of the week as OPEC+ agreed to extend most of their supply cuts into 2025 but allowed for voluntary cuts from eight member countries to be gradually unwound starting in October. However, rising odds of Fed rate cut this year amid softening Jobs market coupled with rate cut expectations from other major central banks aid the sentiments.

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