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

Comex gold futures closed 0.4% higher, settling above $2,930 per ounce, supported by ongoing safe-haven demand. While gold prices pulled back after reaching a record high above $2,970 earlier in the week, the yellow metal remains well-supported amid concerns over the health of the US economy and rising inflation. Traders are now fully pricing in two quarter-point interest rate cuts this year, with weak U.S. economic data bringing forward expectations of these cuts. There is growing anticipation that the Federal Reserve may implement the first rate reduction in June, rather than in September as expected just a week ago. Today, gold is trading 0.5% lower as investors assess the latest tariff announcements from US President Donald Trump and remain cautious ahead of key US economic data, including preliminary GDP and unemployment claims.

WTI crude oil dropped to a two-month low of $68.40 per barrel yesterday, hurt by an increase in product inventories, the potential easing of supply disruptions, and growing concerns about slower US demand, which overshadowed the impact of a surprise oil inventory draw. According to EIA data, US crude oil stocks fell by 2.3 million barrels in the week ending February 21, while gasoline and distillate inventories rose by 0.4 million and 3.9 million barrels, respectively. Additionally, progress in Russia-Ukraine peace talks has raised hopes that sanctions on Russia could be lifted, and the possibility of oil exports from the Kurdistan region of Iraq resuming in the coming days is also weighing on prices. Today, oil prices saw a slight uptick, rising to $68.90 per barrel, but the upside is expected to remain limited. Oil is on track for a more than 5% decline this month, marking its largest monthly loss since September, amid Trump tariff threats, an increase in supply, and weaker demand.

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