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

COMEX Gold prices have been slowly and steadily rising since last week as sluggish US economic data heightened expectations that the Federal Reserve might reduce interest rates this year, as consumer spending and inflation cools. Chicago Fed Bank President Austan Goolsbee called the latest consumer price inflation reading "excellent" and expressed optimism for further inflation cooling this year. Meanwhile, central banks plan to increase their gold reserves as per a recent WGC survey. Investors are now focused on weekly jobless claims due later today and flash purchasing managers' indexes on Friday for insights into consumption and economic strength. Escalation in geo-political tensions also aids the safe haven demand with rising odds of an all-out war between Israel and Hezbollah in Lebanon.

WTI Crude oil futures steadied near a one and half month high of above $80 per bbl as investors weighed higher demand and prospects of supply disruptions from escalation in geo-political tensions. Israeli tanks advanced deeper into the Gaza Strip city of Rafah on Wednesday, while a top Israeli official recently warned of an impending “all-out war” with Lebanon’s Hezbollah. Meanwhile, robust global demand growth forecasts from OPEC, the IEA and US EIA, which all predicted stronger consumption in 2H 2024 boosted market sentiment. API inventory data released yesterday showed stocks of US crude oil inventories rose by 2.264 million barrels during the previous week and EIA data is also expected to show a buildup.

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