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

COMEX Gold futures witnessed the first weekly decline in six and plunged more than 2% during the previous week, as investor’s gauged ease in geo-political tensions, mixed economic data from US and hawkish comments from Fed officials ahead of the FOMC policy meeting this week. US economy grew much less than expected in Q1 but inflationary pressures remained elevated. Swap markets have pushed the first quarter point rate cut to November. For the week, the US and Chinese PMIs, US Jobs data and FOMC policy meeting will be in the focus. The Federal Reserve is expected to deliver a hawkish tone given the recent uptick in inflation.

WTI Crude oil rose during the previous week, amid better-than-expected factory activity and signs of imminent policy easing in Eurozone, while investors ignored downbeat US GDP data after Treasury Secretary Janet Yellen said that it could be revised higher later. Oil prices eased in early Asian trading, amid demand concerns from US owing to higher rates coupled with expectations of a truce in Gaza. US Secretary of State Antony Blinken will step up efforts to secure a truce in Gaza, with possible hostage release, during his visit and Israel has agreed to hold off invading Rafah until the meeting.

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