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 prices steadied near $2,330 per troy ounce, as investors digested Fed Chair Powell’s somewhat dovish remarks while awaiting more cues on the Federal Reserve's interest rate outlook. Gold may remain confined to a narrow range as Powell stated on Tuesday that the US is progressively slowing, but reiterated that more data is needed before cutting rates while geopolitical tensions remain elevated in the Middle East as Israel continues its siege on Gaza. Market attention now turns to the upcoming US Jobs report, which could offer more clarity on the Fed's future monetary policy direction. Today's focus will be on the release of the US FOMC May meeting minutes.
WTI Crude oil futures pared early gains and closed slightly lower on Tuesday, as Hurricane Beryl, tearing through the Caribbean Sea, is expected to have weakened into a tropical storm by the time it enters the Gulf of Mexico late this week. US gasoline demand is expected to ramp up as the summer travel season picks up with the Independence Day holiday. on the supply front, OPEC oil output rose in June for a second consecutive month. Today, WTI crude trades near two month highs buoyed by hopes of a significant drawdown in US crude stockpiles as API reported a massive 9.2 million barrels draw last week.
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