Quote On Gold and Crude by Kaynat Chainwala, Senior Manager - Commodity Research, Kotak Securities
Below the Quote On Gold and Crude by Kaynat Chainwala, Senior Manager - Commodity Research, Kotak Securities
COMEX Gold August futures fell nearly 2%, dipping to $3,311 per ounce, safe-haven demand eased with improving sentiment on easing trade tensions between the United States and the European Union, after President Trump signaled imminent negotiations and expressed optimism for a fair trade deal. Also, dollar strengthened to 99.6, supported by a sharp rebound in US consumer confidence, which surged to 98 in May from 85.7 in April, the strongest increase in four years. Adding to the risk-on sentiment, National Economic Council Director Kevin Hassett told CNBC on Monday that he expects “a few more deals even this week,” prompting investors to shift toward riskier assets. Gold prices are currently holding above $3,330 as markets await the release of the FOMC minutes and speeches from Federal Reserve officials for further policy signals. Meanwhile, Federal Reserve Bank of New York President John Williams emphasized the need for a strong response from central banks if inflation deviates from target. Besides, concerns over US fiscal outlook may provide a cushion.
WTI crude oil prices remained under pressure on Tuesday, slipping to $60.3 per barrel due to ongoing concerns over global oversupply ahead of the OPEC+ meeting scheduled for June 1. However, losses were limited as US-Iran nuclear talks hit deadlock over the central issue of uranium enrichment. Oil prices gained momentum today, trading above $61 per barrel, driven by the potential for new US sanctions on Russia following President Trump’s warning that President Vladimir Putin is “playing with fire.” Additionally, the US has barred Chevron from exporting crude oil from Venezuela, raising fears of tighter supply. Optimism over trade talks between the US and EU, following President Trump’s positive remarks on the EU’s efforts to accelerate negotiations, is further fueling risk appetite
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