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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 Wednesday and is only 2% shy off an all-time high of $2448.8 per troy ounce notched in April 2024. The yellow metal was buoyed by a weaker dollar and lower US benchmark treasury yields, after the inflation numbers indicated a cool down, strengthening expectations of an interest rate cut by the Federal Reserve. The US headline CPI slowed to 0.3% m/m, below the expected 0.4%, while y/y numbers eased to 3.4% and core inflation to 3.6%, aligning with forecasts. This was followed by dovish statement from Chicago Fed Bank President Austan Goolsbee who expressed his optimism that inflation would continue to decrease. Investors now look ahead to weekly jobless claims data and the Philadelphia Fed manufacturing index later today.

WTI Crude oil futures pared early losses and closed higher on Wednesday, as a larger-than-expected decline in US crude stocks aided oil prices. EIA data showed that US crude stockpiles fell by 2.508 million barrels last week, declining for the second straight week and exceeding forecasts for a 1.362 million barrel draw. US gasoline and distillate fuel inventories also saw unexpected decreases. A soft US inflation print for April bolstered bets that the Federal Reserve will pivot to easing this year. Geo-political tensions also remain high as Israel pushed with the Rafah offensive.

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