Mr. Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Gold prices traded firm with spot gold prices at COMEX were trading 0.35% down near $1770 per ounce on Wednesday. Gold Aug future contract at MCX was marginal up near Rs. 51413 per 10 grams by noon session.
Gold pared some losses after falling to nine month lows on stronger dollar. The dollar index is hovering near 20 years high lowering demand for the precious metals. Bullion bulls have been wounded for weeks by the Fed's rate cudgel as policymakers at the central bank showed no backing down in their aim to tame the inflation beast. We expect gold prices to trade sideways to down for the day with COMEX spot gold support at $1750 and resistance at $1785 per ounce. MCX Gold Aug support lies at Rs. 51100 and resistance at Rs. 51700 per 10 gram.
Crude Oil prices traded higher with benchmark NYMEX WTI crude oil prices rose by 1.24% to $100.69 per barrel. Crude oil prices pared some losses as investors piled back into the market after a heavy rout in the previous session, with supply concerns returning to the fore even as worries about a global recession linger. OPEC Secretary General Mohammad Barkindo said on Tuesday that the industry was "under siege" due to years of under-investment, adding shortages could be eased if extra supplies from Iran and Venezuela were allowed. We expect crude oil prices to trade sideways to down with resistance at $103 per barrel with support at $98 per barrel. MCX Crude oil July contract has important support at Rs. 7680 and resistance at Rs. 8120 per barrel.