IGI Logo

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

COMEX Gold futures closed marginally higher at the start of the week, as data released yesterday showed that the US ISM manufacturing PMI shrank for the third consecutive month in June, indicating that inflation might keep easing. Meanwhile, Federal Reserve Bank of New York President John Williams said he is confident the US central bank will achieve its goal of bringing inflation down to 2%. For the week, US ISM PMIs, Jobs data, FOMC meeting minutes and comments from Fed chair Jerome Powell will be in spotlight. Any signs of weakness in Jobs market might boost rate cut bets and aid gold prices.

WTI Crude oil futures rose more than 2% at the start of the week, amid heightened geo-political tensions and markets braced for the Atlantic hurricane season. Hurricane Beryl made landfall on Carriacou Island in the Caribbean as a category 4 storm, raising concern that such a severe system this early in the year may portend a serious hurricane season, which is still months away from its typical peak (Bloomberg). OPEC’s crude production remained steady for a third month, while some key members continued to pump above agreed limits. The cartel pumped an average of 26.98 mbpd in June, or 80,000 bpd less than May. Oil prices might remain buoyed on supply concerns in the event of an escalation in the war.

Above views are of the author and not of the website kindly read disclaimer