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

Comex Gold prices held above $2,400, breaking a four-day losing streak on Tuesday, as the market awaited clarity on the Fed's first interest rate cut. Today, Comex Gold continues to hold gains, trading above $2410 per ounce amid anticipation of upcoming US data releases that could support Fed rate cuts. US personal consumption expenditures, Fed’s preferred underlying inflation measure, due Friday, is expected to show easing price pressures in June. According to the CME FedWatch Tool, traders see a 96% chance of a 25 basis points rate cut in September. Furthermore, a sharp reduction in India's import duty on gold and silver from 15% to 6% is likely to boost retail demand. Today, Flash PMI data from major global economies will be closely watched for early insights into business activity in July.

WTI crude oil slipped to a one and a half month low of $76.4/bbl weighed down by rising prospects of Ceasefire in Gaza coupled with Chinese demand concerns. Today, WTI Crude edged higher, snapping losses in the last three consecutive sessions as API reported oil stockpiles shrank by 3.86 million barrels, with Cushing inventories also down by 1.6 million barrels for the week ending July 19. This suggests EIA inventories may probably witness decline for the fourth consecutive week. Oil prices may also find support from reports of wildfires across Canada’s oil patch threatening almost 10% of the region’s oil production. However, sharp upside may be capped ahead of the OPEC+ ministerial meeting due August 1, where no changes to the group's output policy are expected.

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