Mr. Tapan Patel, Senior Analyst - Commodities, HDFC Securities.
Gold prices traded firm with spot gold prices at COMEX were trading 0.26% up near $1743 per ounce on Thursday. Gold Aug future contract at MCX was 0.31% up near Rs. 50661 per 10 grams by noon session.
Gold prices pared some previous loses on weaker dollar after falling to 10 month lows. The Fed speculation and dollar movement is dominating bullion prices to trade weak. The dollar index was trading around 0.22% down at 106.65 for the day. The US FED reiterated to home interest rates hinting real danger of high inflation. We expect gold prices to trade sideways to down for the day with COMEX spot gold support at $1720 and resistance at $1760 per ounce. MCX Gold Aug support lies at Rs. 50300 and resistance at Rs. 50900 per 10 grams.
Crude Oil prices traded steady with benchmark NYMEX WTI crude oil prices were trading near $98.44 per barrel. Crude oil prices traded steady supported by weaker dollar and positive global cues. U.S. crude oil inventories unexpectedly increased last week, confounding expectations for a decline and adding to the bulging weight of expectations that energy demand destruction is underway amid growing fears of a recession. The US API data showed that US Crude oil inventories increased by about 3.8 million barrels for the week ended June 30. We expect crude oil prices to trade sideways to down with resistance at $102 per barrel with support at $95 per barrel. MCX Crude oil July contract has important support at Rs. 7680 and resistance at Rs. 8010 per barrel.