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 August gold futures edged down on Wednesday, closing just below $3,325 per ounce, weighed down by a stronger US dollar and rising global bond yields. Additionally, slightly hawkish minutes from the Federal Reserve’s May 6–7 FOMC meeting added to the bearish sentiment. Despite recent losses, geopolitical tensions, particularly those involving Ukraine and the Middle East, continue to offer safe-haven support for gold. Today, gold extended its decline for a fourth consecutive session, trading near $3,290 per ounce as sentiment improved after a US trade court blocked President Trump’s global tariff agenda, providing a temporary lift to investor confidence. The court ruling nullified Trump flat tariffs, elevated duties on China and others, as well as fentanyl-related tariffs on China, Canada, and Mexico. Investors are now keenly awaiting US preliminary GDP, weekly jobless claims, and pending home sales, for further economic cues.
WTI crude oil prices rose over 1.5% on Wednesday, closing at $62.5 per barrel, supported by tightening supply concerns after the US government barred Chevron from exporting crude oil from Venezuela. Further boosting prices, OPEC+ members agreed to maintain their current output quotas. Today, oil prices extended gains to $62.7 per barrel, buoyed by improved market sentiment following the US trade court’s ruling against Trump’s global tariff policy. Besides, markets eye progress on the US-Iran nuclear deal with reports suggesting Iran may pause uranium enrichment for a year if the US recognizes its right to enrich uranium for civilian use and releases frozen oil revenues. Adding to bullish momentum, API reported a surprise draw of 4.236 million barrels in US crude stocks for the week ending May 23. If confirmed by the EIA later today, it would mark a surprise drawdown following two consecutive weeks of stock builds
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