Quote on Gold and Crude quote by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities
Below the Quote on Gold and Crude quote by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities
COMEX gold prices surged 3% to settle above $3,422 per ounce, marking the second-highest close on record. The sharp rise was driven by a weaker U.S. dollar and heightened safe-haven demand amid uncertain outlook for global trade. Geopolitical risks also provided additional support, with investor caution rising following Israel’s airstrikes on Houthi-controlled targets in Yemen in retaliation for a missile attack. However, gold prices edged lower today, dipping below $3,370, as optimism around U.S.-China trade talks reduced safe-haven demand. Market focus has now shifted to the upcoming FOMC policy decision, where the Federal Reserve is widely expected to keep interest rates unchanged despite ongoing pressure from President Trump to cut rates in support of economic growth. Traders are also keenly awaiting Fed Chair Jerome Powell’s remarks for any clues on the future direction of monetary policy.
WTI crude oil rebounded sharply on Tuesday to $59.80 per barrel, recovering from a four-year low of $55.30 per barrel seen in the previous session. The earlier decline was viewed as excessive, prompting a strong recovery fueled further by optimism surrounding U.S.-China trade negotiations and signs of improving demand in China during the holiday period. Monday’s steep decline followed OPEC+’s weekend decision to accelerate the unwinding of production cuts for a second consecutive month in June. Today, crude continued to edge higher, trading around $59.7 per barrel, after confirmation of the first formal trade talks between the U.S. and China. U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are set to meet with Chinese officials in Switzerland later this week. Further gains are possible if the upcoming EIA report confirms a crude inventory draw, following API data showing a 4.49 million-barrel decline in U.S. crude stocks for the week ending May 2.
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