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 (August) futures surged to $3,326 per ounce yesterday, closing 1.6% higher, as the US dollar slipped to a two-week low amid challenges to President Trump’s tax bill and his warning that a failure to pass the bill could result in massive tax hikes. Strong demand from China also supported gold prices, with April imports rising 73% month-on-month to 127.5 metric tons, the highest level in 11 months, despite record-high prices. Meanwhile, dovish comments from ECB officials, signaling potential rate cuts, and ongoing trade tensions, particularly with Japan, added to market volatility. Today, gold extended its gains to $3,344 per ounce, supported by continued dollar weakness and rising geopolitical tensions following reports of a potential Israeli strike on Iranian nuclear facilities. Speeches from Federal Reserve officials will be closely watched. So far this week, several FOMC members have emphasized a cautious, wait-and-watch approach, suggesting the Fed may not be ready to lower interest rates before September due to tariff-related uncertainty.
WTI crude traded within a narrow range yesterday before closing at $62 per barrel, as markets remained cautious amid ongoing Russia-Ukraine peace talks and U.S.-Iran nuclear negotiations. Prices briefly spiked to $62.60 per barrel as Iran rejected Washington’s demands to abandon its uranium enrichment program, calling them excessive and outrageous, dampening hopes for sanctions relief. Iran warned that negotiations with the U.S. are unlikely to progress if Washington continues to insist on zero enrichment. Today, crude prices rebounded sharply to $64.19 per barrel following reports that Israel is preparing for a potential strike on Iranian nuclear facilities, heightening concerns over possible supply disruptions. Besides, markets are keenly awaiting the EIA inventory report, after the API reported a 2.499 million barrel increase in U.S. crude stockpiles for the week ending May 16. If the official EIA data also shows a buildup, contrary to expectations of a drawdown for the second consecutive week, prices could see a modest pullback.
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