Gold and Crude Oil - June 3, 2022 - HDFC Securities

Posted On : 2022-06-03 19:10:30( TIMEZONE : IST )

Gold and Crude Oil - June 3, 2022 - HDFC Securities

Mr. Tapan Patel, Senior Analyst - Commodities, HDFC Securities

Gold prices traded steady with spot gold prices at COMEX were trading marginal down near $1866 per ounce on Friday. Gold Aug future contract at MCX were trading firm near Rs. 51329 per 10 grams by noon session.

Gold prices extended gains on weak US ADP payroll data and economic slowdown worries. The traders and investors will await for official non-farm payroll data later on the day. The slower job growth may add worries to US economic recovery which may boost safe haven buying in the yellow metal. We expect gold prices to trade sideways to up for the day with COMEX spot gold support at $1850 and resistance at $1890 per ounce. MCX Gold Aug support lies at Rs. 51000 and resistance at Rs. 51600 per 10 grams.

Crude Oil prices traded lower with benchmark NYMEX WTI crude oil fell by 0.50% to $116.28 per barrel. Crude oil prices dropped in the wake of OPEC+'s announcement to increase production and a myriad of crosswinds in the volatile, supply-constrained market. The OPEC+ agreed to increase production in July and August by 50% from its prior plan, to 0.648 million barrels/day. The tight supplies due to EU sanction and US inventory draw has capped down side for the day. We expect crude oil prices to trade sideways to down with resistance at $120 per barrel with support at $112 per barrel. MCX Crude oil June contract has important support at Rs. 8910 and resistance at Rs. 9150 per barrel.

Source : Equity Bulls


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