IGI Logo

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

COMEX Gold prices fell 0.4% on Thursday as hawkish comments by few Fed officials tempered optimism regarding rate cuts. Federal Reserve Bank of Richmond President Thomas Barkin and his New York John Williams reiterated that US central bank needs to keep borrowing costs elevated for longer to lower inflation to its 2% target, hinting that just one softer inflation reading won’t be enough to prompt rate cuts. Investors now look ahead to speeches by Fed officials today as more hawkish remarks may push traders to recalibrate rate cut bets.

WTI Crude oil futures extended gains on Thursday and closed above $79/bbl, as a soft US inflation print for April and moderation in hiring coupled with decline in US crude stocks continued to support prices despite a cut in IEA demand growth forecast. Geo-political tensions remain high as fierce fighting continues around the southern city of Rafah and intense battels between Israeli forces and Palestinian groups in the northern Gazan town of Jabalia. Oil prices may waver today as mixed economic data from China hinted towards a the lopsided recovery in the world’s top consumer.

Above views are of the author and not of the website kindly read disclaimer