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

COMEX gold futures fell 0.6% yesterday, settling below $3,380 per ounce, weighed down by a rebound in the US dollar from a six-week low, following a surprise increase in US April JOLTS job openings to 7.391 million, exceeding forecasts and signaling continued strength in the labor market. Eurozone inflation dipped below the ECB’s 2% target in May, reinforcing expectations for rate cuts, which pressured the euro and further supported the US dollar. Besides, Atlanta Fed President Raphael Bostic reiterated a cautious stance on interest rate cuts, while comments from Bank of Japan Governor Kazuo Ueda about reducing bond purchases added further pressure on precious metals. Prices surged to a one-month high of $3,417/oz earlier in the session on safe-haven demand as the US-China trade truce came under threat while Trump’s tariff hikes on steel and aluminum prompted warnings of countermeasures from the European Union. Today, gold prices slipped further below $3,370 per ounce, as markets await key US labor report and speeches by Federal Reserve officials. However, ongoing trade tensions between the US and key partners such as China and the EU could provide underlying support.

 
WTI crude oil prices extended gains yesterday, rising to $63.9 per barrel, supported by geopolitical tensions, strong US gasoline demand, and concerns over supply disruptions due to wildfires in Alberta. US gasoline consumption surged ahead of the Memorial Day weekend, marking a strong start to the summer driving season. On the macroeconomic front, the OECD revised its global growth forecasts downward for 2025 and 2026. The US is expected to be among the most affected, with GDP growth projected to slow from 2.8% in 2024 to 1.6% in 2025 and 1.5% in 2026. Today, WTI edged lower to $63.17 per barrel, as rainfall in Canada eased concerns about supply disruptions that had threatened nearly 7% of the country’s oil output. Market participants are now awaiting the official EIA inventory report, after the API reported a 3.3 million-barrel decline in US crude stocks for the week ending May 30.

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