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Below the Quote On Gold and Crude by Kaynat Chainwala, Senior Manager - Commodity Research, Kotak Securities

COMEX Gold prices rose more than 1% on Thursday, despite a rally in the greenback as escalation in geo-political tensions and weak US data released recently raised Fed rate cut bets. The greenback strengthened against the British pound, after the BoE left the bank rate steady as expected but signaled a rate cut is approaching. Gold prices are hovering near the highest in two weeks and is poised for a second consecutive weekly gain as last week's data revealed a slowdown in the labor market and price pressures, followed by weak retail sales data on Tuesday, indicating that economic activity remained sluggish in the second quarter. Now the focus will be on the flash PMIs from the advanced economies later today. Rising odds of an Israel – Hezbollah war might keep the prices buoyed. 

WTI Crude oil futures rose for the fourth consecutive day and are poised for the second weekly gain in a row, as heightened geo-political tensions propped up the risk premium. Data released on Thursday showed that US crude stockpiles declined by 2.547 million barrels last week, while gasoline and distillate stocks also experienced surprise drawdowns. Meanwhile, a forecast from the American Automobile Association for a record 71 million Americans to travel over the US Fourth of July holiday period. In the Middle East, Israeli forces advanced deeper into the Gaza Strip city of Rafah, and exchange of fire happens between Hezbollah in Lebanon, raising geopolitical tensions in the region that could disrupt oil flows.

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