Gold Jumps On Safe Haven Demand, Crude Holds 10% Gain

COMEX Gold futures jumped on soaring crude oil prices and continued buying support. COMEX Gold is up 0.70% at 1510 per ounce. MCX Gold futures are up 1.30% at Rs 38006 per 10 grams. Safe haven buying increased after the US President Donald Trump said that the United States was locked and loaded for a potential response to drone attack on Saudi Arabias oil facilities.

Crude oil futures surged today after a major drone attacks on two Saudi Aramco oil facilities in eastern Saudi Arabia. A sharp decline in last week which pulled the WTI futures near one week low of $ 54 per barrel also acted in favor of the bulls as traders looked at an immediate squeeze on global crude oil supplies to the tune of 5%.

However, the US President Donald Trump said that he has authorized releasing oil from the Strategic Petroleum Reserve and this pulled the WTI Crude lower after the commodity tested around four month high of $ 63.47 per barrel. The counter currently trades at $ 60.36 per barrel, up 10% on the day. MCX Crude oil futures are trading at Rs 4325 per barrel, up 10.50 on the day after hitting high of Rs 4350 mark.