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

COMEX Gold fell to a one-month low of $3,123 per ounce last week, marking a sharp 4% weekly loss, its worst performance of the year. The decline was driven by easing geopolitical tensions and improving trade sentiment. Progress in US-China tariff negotiations, President Trump’s decision to lift sanctions on Syria during his Middle East tour, and growing optimism over potential trade deals with Japan and South Korea all reduced demand for traditional safe-haven assets. Adding to the bearish tone, the US announced plans to significantly lower the “de minimis” tariff threshold for low-value Chinese imports, possibly to as low as 30%, encouraging a shift toward riskier assets. Still, gold rebounded late Friday to close the week at $3,187 per ounce, supported by Moody’s downgrade of the US credit rating from Aaa to Aa1, citing a ballooning federal budget deficit and a national debt that now stands at $36 trillion. Gold extended its recovery today, with COMEX futures surging above $3,250 per ounce, as growing concerns about the US economic outlook and fiscal stability following the credit downgrade renewed safe haven bids.

 WTI crude oil prices experienced sharp swings last week, climbing to a two-week high of $63.9 per barrel on optimism over a US-China trade truce, before retreating to $60.5 per barrel after President Trump indicated that the US was close to reaching a nuclear deal with Iran, raising concerns about a potential supply glut. Prices later recovered to end the week at $62.5 per barrel, supported by low refined product inventories and easing trade tensions. WTI crude edged lower to $61.8 per barrel today as markets assess the impact of the US credit rating downgrade and ongoing diplomatic efforts to resolve the Ukraine conflict, ahead of a scheduled call between Presidents Trump and Putin. However, further downside may be limited, as a key sticking point in US-Iran nuclear negotiations remains unresolved. US special envoy Steve Witkoff emphasized that any deal must include a halt to uranium enrichment, while Iran’s foreign minister firmly stated that uranium enrichment will continue with or without a deal with the US.

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