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

WTI Crude oil futures extended gains for the second amid optimism on Chinese and US demand. Data released yesterday showed Chinese crude oil imports increased in April, signaling improving demand. Meanwhile, a surge in US weekly jobless claims bolstered expectations for Federal Reserve interest rate cuts this year. Tensions also remained high as Israeli forces continued with the Rafah offensive, as Prime Minister Benjamin Netanyahu dismissed US President Joe Biden's threat to withhold weapons from Israel if it assaults the southern Gaza city.

COMEX Gold prices rose more than 1% on Thursday, tracking a weakness in the greenback and US benchmark treasury yields after initial jobless claims unexpectedly soared to 8-month highs, offering further evidence the labour market is softening, and paving the way for a Fed interest rate cut. Investors are also monitoring developments in the Middle East, with any further escalation potentially bolstering gold’s appeal as a haven. Markets focus now shifts to next week's CPI and PPI releases for further insights into the Fed's monetary stance.

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