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 August gold futures fell 0.55% on Thursday, reversing earlier gains, as the US dollar rebounded following robust US data, which signaled continued economic resilience and supported a more hawkish outlook for the Federal Reserve. US Initial jobless claims dropped to 227,000, below expectations, while both the flash manufacturing and services PMIs rose to 52.3, beating forecasts. Gold prices had initially gained on concerns over the US fiscal outlook and dovish remarks from Fed Governor Waller, who indicated that rate cuts may be possible in the second half of the year if tariffs stabilize around 10%. Despite the pullback, bullion remained supported by ongoing geopolitical tensions, including reports that Israel may strike Iran’s nuclear facilities if US-Iran nuclear talks collapse. Today, Gold edged higher to $3,338, set for its biggest weekly gain since mid-April, as fiscal concerns in the US continue to provide a supportive backdrop. Traders are now waiting for upcoming US housing data and speeches from several Federal Reserve officials, which may influence further price moves.
WTI crude oil slipped to $60.3 per barrel on Thursday following reports that OPEC+ is considering another large production increase after two consecutive hikes of 411,000 barrels per day for May and June, raising concerns about a potential supply glut. Prices were further pressured by an unexpected build in US crude inventories for the second week in a row, along with increases in fuel stockpiles. Also, the US dollar strengthened after the House of Representatives passed Trump’s signature tax bill, adding more downward pressure on oil prices. Despite these factors, WTI managed to close above $61/bbl, buoyed late in the session by a statement from US Secretary of State Marco Rubio, who announced that a key license allowing US energy giant Chevron to operate in Venezuela will expire as scheduled on May 27, contradicting earlier reports suggesting an extension had already been granted. Today, oil prices extend decline to $60.7/bbl, weighed down by the prospect of increased OPEC+ output and ongoing uncertainty surrounding Russia-Ukraine peace talks and US-Iran nuclear deal negotiations
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