Kaynat Chainwala
Kaynat Chainwala
With three simultaneous chokepoints under stress and the Yanbu bypass route now threatened, a Brent move above $100 looks increasingly plausible
Gold's near-term direction depends on whether June CPI marks the start of a durable disinflation trend or a temporary pullback driven by energy base effects.
Recent pullback in crude oil prices from the channel support suggests short-covering, but the prevailing structure continues to reflect lower highs and lower lows, keeping the broader downtrend intact
Domestically, MCX gold remained relatively resilient, seeing a 5 per cent decline in the June quarter, supported by the depreciation of the Indian rupee and higher import duties.
Gold sold off not because the war became less threatening, but because the war was making the Fed's job harder.
The Supertrend indicator remains in sell mode, while prices are hovering around the short-term moving average zone, suggesting the absence of a strong directional trend.
Even a successful reopening may not bring oil prices down sharply, as the scale of disruption and the time required for markets to rebalance will keep oil elevated in the range of $80-95 range.
Reports of a possible US-Iran framework involving a ceasefire extension and steps to reopen Hormuz triggered a sharp 7 per cent single-session drop earlier this week
Rising real yields alongside a firmer dollar have together stripped two of gold's most consistent supports simultaneously
MCX Crude Oil on the daily chart is consolidating within a symmetrical triangle pattern, indicating a phase of compression after the recent volatile swings