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 extended losses for the third consecutive session on Monday, as dollar index surged to a two-week high of 104.4 following data that showed improved US business activity in March. S&P Global’s flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 53.5 this month from 51.6 in February. Hawkish Fed commentary added pressure on bullion after Atlanta Fed President Bostic signaled just one 25-bps rate cut this year as he anticipates slower progress in inflation in the coming months. Meanwhile, US and Russian officials held ceasefire talks in Saudi Arabia, with Washington emphasizing a Black Sea maritime deal. Today, gold is trading near $3,020/oz as traders got relief from signs the next wave of US tariffs is shaping up as more focused, easing fears of an all-out trade war. Also, investors eye key US economic data, including home sales and consumer confidence for hints on policy outlook. However, sharp downside may be limited as geopolitical risks persist as Israel plans military drills near Lebanon and evacuations in northern Gaza.
WTI Crude gained for the fourth consecutive session yesterday, driven by President Trump's warning of a 25% tariff on countries importing oil and gas from Venezuela. Additionally, oil prices received support from improved risk sentiment amid signs that Trump's trade sanctions may be more targeted than previously anticipated. However, the upside was capped as the US extended Chevron's wind-down of oil exports from Venezuela until May 27, an extension from the original deadline of March 4. Today, oil prices steadied near $69 per barrel, supported by concerns over supply disruptions and ongoing geopolitical tensions in the Middle East.
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