Quote On Gold and Crude by Kaynat Chainwala, Senior Manager - Commodity Research, Kotak Securities
Below the Quote On Gold and Crude by Kaynat Chainwala, Senior Manager - Commodity Research, Kotak Securities
Comex Gold futures extended their rally on Monday, closing above $3,006 per ounce as weak US economic data and a softer dollar fueled safe-haven demand. The NY Empire State Manufacturing Index took a significant hit, plunging to -20 in March, while February retail sales showed only a modest 0.2% increase, falling short of expectations but improving from January’s -1.2% decline. With economic uncertainties mounting, investor appetite for gold as a safe haven soared. Geopolitical risks also contributed to gold’s surge. The US reaffirmed its commitment to military action against Houthi forces in Yemen, with Pentagon spokesperson Parnell warning of severe consequences for any attacks on US troops. Meanwhile, Israel reported increased Hamas activity near Gaza, heightening fears of new military strikes in the region. This combination of economic and geopolitical turmoil pushed gold futures to an all-time high of $3,024 today, as market participants flocked to the precious metal for protection amidst rising global tensions. Gold prices this week will also be influenced by the upcoming Federal Reserve policy meeting, where investors are hoping for guidance on future monetary policy amid growing economic concerns.
WTI crude oil also gained steam on Monday, surging to $68.40 per barrel, largely driven by escalating tensions in the Middle East. The surge followed US military strikes on Yemen, with the Department of Defense stating that these attacks would continue until the Houthis halt their assaults on shipping in the region. Also, mixed economic data from China sparked hopes that China’s policymakers might introduce measures to stimulate domestic consumption. China’s retail sales showed an increase in January-February, while unemployment rose, and factory output slowed. Today, WTI crude holds above $67.70 per barrel, supported by a series of military strikes launched by Israel across Gaza, effectively ending a weeks-long standoff over the extension of a ceasefire that had halted fighting in January. Additionally, President Trump stated that he would hold Iran responsible for any escalation of Houthi attacks, intensifying the geopolitical risks in the region
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