Quote On Gold and Crude by Kaynat Chainwala, Senior Manager - Commodity Research, Kotak Securities
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Below the Quote on Gold and Crude by Kaynat Chainwala, Senior Manager - Commodity Research, Kotak Securities
COMEX Gold prices pared gains after touching a fresh all-time of $2454.2 per troy ounce on Monday, after a slew of hawkish comments from Fed officials prompted markets to rethink about the rate cut trajectory. Fed Vice Chair Philip Jefferson said on Monday it was too early to tell if the inflation slowdown is "long lasting," while Vice Chair Michael Barr said restrictive policy needs more time. A soft US inflation print last week saw traders piling into bets on a potential September rate cut. Today, investors might pay attention to Fed official’s speeches for more cues on policy path amid lack of economic data.
WTI Crude oil futures came under pressure as investors weighed weak demand prospects against lack of supply disruptions. Hawkish comments from Fed officials improved the conviction that rates might stay higher for longer and the quantum of cuts might be less than market anticipations, which might weigh on the oil demand going forward. At the same time, recent events such as Ukraine's attacks on Russian refineries and a Houthi missile strike in the Red Sea continued to pose risks to global supply. Now the focus is on the OPEC+ meeting due on 1st June, to see whether the cartel might extend the 2.2 mbpd of ongoing voluntary output cuts.
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