Quote on Gold and Crude by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Below the Quote on Gold and Crude by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities
COMEX Gold prices plunged for the second day and closed near a three week low, weighed down by stronger yields and higher dollar. US 10 year yields rose 8 bps on Wednesday, increasing the opportunity cost for holding the yellow metal. Fed Governor Michelle Bowman said that inflation will remain elevated for some time, so it’s not yet appropriate to start cutting rates. The likelihood of a 25bps Fed rate cut by September is currently at 64%, down from 68% earlier in the week. Traders are still betting on two quarter-point reductions this year. Investors now look ahead to weekly jobless claims, durable goods orders and pending home sales data later today.
WTI Crude oil futures pared early gains and closed marginally higher on Wednesday as an unexpected inventory addition raised concerns about weakening demand in the world’s top oil consumer. EIA inventory data released yesterday showed that US crude inventories increased by 3.591 million barrels during the previous week, defying market expectations for a 3 million barrel decline. Meanwhile, US gasoline stocks also rose by 2.654 million barrels, but distillate stockpiles went down by 0.377 million barrels. However, downside remain limited amid escalating conflict in the Middle East, with brewing tensions between Israel and Lebanon's Hezbollah.
Above views are of the author and not of the website kindly read disclaimer
