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 extended gains for a third consecutive session on Wednesday, settling above $3,340 per ounce. The rally was supported by a weaker US dollar and continued safe-haven demand amid persistent economic and geopolitical uncertainty. Heightened tensions in the Middle East pushed bullion higher after CNN reported that Israel may be preparing to strike Iranian nuclear facilities, despite ongoing U.S.-Iran negotiations over uranium enrichment. Geopolitical risks were further amplified when President Trump announced ceasefire talks between Russia and Ukraine, although he withdrew from any role in mediation. Also, a surge in Chinese gold imports, despite record-high prices, added to bullish momentum. Today, gold is extending its rally into a fourth straight session, trading above $3,370 per ounce as lackluster demand for US Treasury auction, signaled growing investor concerns over the US fiscal outlook. Besides, flash PMI data from major global economies and U.S. jobless claims may further influence price moves.
WTI crude oil experienced sharp volatility yesterday as prices spiked to $64.19 per barrel early in the session amid supply disruption concerns, following reports that Israel may target Iranian nuclear sites. However, prices later slipped below $62 per barrel after the US Energy Information Administration (EIA) reported an unexpected build of 1.3 million barrels in crude inventories for the week ending May 16. Gasoline and distillate stocks also rose by 0.8 million and 0.6 million barrels, respectively. Oil prices declined further to $61.3 per barrel in late trading after Oman’s foreign minister confirmed that the fifth round of Iran-U.S. nuclear talks will take place on May 23 in Rome. Today, WTI holds declines, pressured by concerns over a potential supply glut and subdued global risk appetite as a proposed U.S. tax-cut bill has raised concerns over a ballooning deficit.
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