Quote on Gold Crude by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities
Below the Quote on Gold Crude by Kaynat Chainwala, AVP-Commodity Research, Kotak Securities
Comex Gold futures edged lower on Thursday, closing at $2,876.70 per ounce, as the dollar held steady ahead of the key US jobs report. However, gold is still on track for its sixth consecutive weekly gain, as escalating US-China trade war concerns and ongoing geopolitical tensions continue to drive safe-haven buying. While the US delayed a 25% tariff on Mexico and Canada by a month, China's retaliatory tariffs are set to take effect on February 10. Besides, Federal Reserve Bank of Dallas President Lorie Logan expressed a preference for keeping rates steady until labor markets cool, while Chicago Fed President Austan Goolsbee advocated for a more gradual approach to rate cuts, given the uncertainty surrounding the impact of tariffs and other policy changes. Comex Gold is trading modestly higher today, as markets turn their focus to the upcoming US jobs report particularly given Powell’s emphasis that future rate decisions will remain data-dependent. A strong jobs report could raise concerns about inflationary pressures, while a weaker report might strengthen the case for rate cuts.
WTI crude oil closed 0.6% lower yesterday, settling at $70.40 per barrel, as US President Trump reiterated his commitment to increasing US oil production, which is already near record highs, in an effort to reduce oil prices and combat inflation. Earlier in the session, prices had risen to $71.90 per barrel, following Saudi Aramco’s decision to raise its crude oil prices for Asian customers in March by $2.40 per barrel, the most since 2022, bringing it to $3.90 per barrel above the regional benchmark. Oil prices edged higher today, hovering near $71 per barrel, but are still on track for a third consecutive decline amid concerns about a potential US-China trade war, which could dampen crude demand growth. Additionally, markets are closely watching the first batch of US sanctions against Iran under the Trump 2.0 administration, in which the US Treasury Department targeted an international network allegedly facilitating the shipment of Iranian oil to China
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