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 surged to $2,757.50 per ounce on Monday, supported by safe-haven demand following recent polling data that suggested a tight US presidential race, with no clear frontrunner between Kamala Harris and Donald Trump ahead of Tuesday's vote. Last week, gold hit a new all-time high of $2,801.80 per ounce amid the closely contested election, reaffirming its status as a safe-haven asset. However, gold retreated from its highs as strong US economic data raised expectations that the Federal Reserve may take a cautious approach to monetary easing. Today, Comex gold remains steady above $2,740 per ounce as the countdown to the tight US election intensifies, with markets also awaiting the FOMC statement later this week.
WTI crude oil rallied 3% on Monday to $71.80 per barrel, as OPEC+ delayed a planned partial rollback of its production cuts by one month, citing weak prices amid a fragile economic outlook. The re-escalation of tensions between Israel and Iran over the weekend, with Iran warning of a "crushing response" that could extend beyond missiles and drones, added further support to crude prices. This, coupled with hopes of fiscal stimulus from China, set the stage for further upside in oil prices. Today, WTI crude is holding steady above $71.60 per barrel, supported by a sharp expansion in China's private services PMI in October, underscoring the positive impact of Beijing's sweeping economic measures. However, significant upside may be limited as traders remain cautious ahead of the closely contested US election. Additionally, Libya's National Oil Corporation (NOC) reported that the country's oil production is nearing 1.5 million barrels per day, well above the 1.2 million barrels per day produced before production was halted at the Sharara, El Feel, and Essider oilfields in late August.
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