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

COMEX Gold prices remain weak, but is holding above $2,300 per troy ounce as investors anticipate a Fed rate cut later this year. Fed Bank of Boston President Susan Collins emphasized the necessity for the US economy to cool down to reach the central bank's 2% inflation target. Markets now show a 66% chance of a rate cut in September, according to CME FedWatch Tool. According to a WGC monthly report released yesterday, global gold ETFs saw their eleventh consecutive monthly outflow (-US$2.2bn) in April. For the day, BOE monetary policy, US weekly jobless claims and speeches from Fed officials will be in the spotlight.

WTI Crude oil futures edged higher after the EIA inventory data showed a drop in US crude stocks. Crude oil inventories in the US fell by 1.361 million barrels during the previous week, while gasoline and distillate stocks edged higher. US gasoline and diesel demand are at their weakest seasonal level since the 2020 coronavirus pandemic, pulling refiner’s margins for making the products to multi-month lows. This comes at the onset of the summer driving season in the US, a peak demand period for gasoline. Hopes for a ceasefire in the Middle East might continue to drag.

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