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
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Below the Quote on Gold and Crude by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities
Comex gold fell over 1% on Wednesday, closing below $2,730 per ounce after reaching a record high of $2,772.60 earlier in the session, pulled back by a stronger US dollar and rising Treasury yields. While safe-haven demand due to the upcoming US election and ongoing conflicts in the Middle East supported prices initially, this was outweighed by the dollar index hitting a two-month high of 104.6 and the benchmark 10-year Treasury yield rising to 4.25%, the highest level since July. Concerns about rising US debt and election uncertainties are also contributing to market volatility. Today, Comex gold steadied around $2,735 per ounce owing to rising Treasury yields amid increasing expectations that the Federal Reserve will take a cautious approach to monetary easing, with swap traders now less than 100% certain of rate cuts at the remaining policy meetings this year. Investors will be closely watching the US Initial Jobless Claims data for the week ending October 19, which is expected to show a slight increase, alongside anticipation of mixed results for the October PMI figures.
WTI crude oil fell more than 1% yesterday to $70.10 per barrel, weighed down by a significant 5.5 million barrel increase in US oil stocks, stronger dollar and weak demand from China. However, the decline was somewhat limited by ongoing tensions in the Middle East, where Israel continues its military actions in Gaza and Lebanon following the killing of a Hezbollah leader, raising fears of retaliation. Today, WTI crude rebounded by 1.5% to $71.80 per barrel as markets assessed the geopolitical situation, while US Secretary of State Antony Blinken and Saudi Crown Prince Mohammed bin Salman held discussions in Riyadh aimed at achieving a ceasefire in Gaza and Lebanon.
Above views are of the author and not of the website kindly read disclaimer
