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 closed higher as investors weighed a moderation in PCE inflation and heightened geo-political tensions. However, hawkish Fed statements capped the gains. On Tuesday, Federal Reserve Bank of Minneapolis President Neel Kashkari said the US central bank’s policy stance is restrictive, but policymakers haven’t entirely ruled out additional interest-rate increases. Now the focus is on the PCE price index data, which is expected to rise 0.2% m/m in April, the smallest advance this year.
WTI Crude oil gained on Tuesday amid expectations of higher demand during the summer driving season coupled with escalation in geo-political tensions, as fighting in the Gaza Strip intensified and another vessel in the Red Sea was attacked. Elsewhere, markets await US PCE price index data this week to assess the path for Fed monetary policy. OPEC+ meeting might turn into a non-event as markets are widely expecting the group to extend the output cuts into 2H 2024. Without any major supply disruptions in oil market, the upside might remain limited
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