Mr. Tapan Patel, Senior Analyst - Commodities, HDFC Securities.
Gold prices traded firm with spot gold prices at COMEX were trading near $1726 per ounce on Wednesday. Gold Aug future contract at MCX was marginal up near Rs. 50585 per 10 grams by noon session.
Gold prices continued to be hammered by stronger dollar which rose to the highest level since October 2002. The market players are awaiting for US inflation data today which may fuel investors' expectations for a 75-basis-point interest rate hike by the U.S. Federal Reserve later this month, as the U.S. central bank seeks to tame inflation. We expect gold prices to trade sideways to down for the day with COMEX spot gold support at $1715 and resistance at $1740 per ounce. MCX Gold Aug support lies at Rs. 50300 and resistance at Rs. 50900 per 10 grams.
Crude Oil prices traded up with benchmark NYMEX WTI crude oil prices rose by 0.69% to $96.50 per barrel. Crude oil edged up, a day after it fell through $100 a barrel for the first time since April, while traders looked towards U.S. inflation data that could weaken the market. The market is closely watching U.S President Joe Biden's visit in the Middle East, where he is expected to ask Saudi Arabia and other Gulf producers to raise oil output to help stabilise prices. We expect crude oil prices to trade sideways to down with resistance at $100 per barrel with support at $94 per barrel. MCX Crude oil July contract has important support at Rs. 7450 and resistance at Rs. 7850 per barrel.