Mr. Tapan Patel, Senior Analyst - Commodities, HDFC Securities.
Gold prices traded lower with spot gold prices at COMEX fell by 0.35% at $1703 per ounce on Friday. Gold Aug future contract at MCX was trading 0.30% down near Rs. 50070 per 10 grams by noon session.
Gold prices extended downside on stronger dollar and expectations that US FED will go for aggressive rate hikes in upcoming meeting to tackle record inflation. Earlier, gold prices hit 27 month low falling below $1700 per ounce on Thursday. We expect gold prices to trade sideways to down for the day with COMEX spot gold support at $1685 and resistance at $1720 per ounce. MCX Gold Aug support lies at Rs. 49800 and resistance at Rs. 50500 per 10 grams.
Crude Oil prices traded lower with benchmark NYMEX WTI crude oil prices were trading over half a percent down near $95.28 per barrel. Crude oil prices pared early gains on dollar recovery and demand growth worries. China's refinery throughput in June shrank nearly 10% from a year earlier, with output for the first half of the year down 6% in the first annual decline for the period since at least 2011, data showed on Friday. U.S. President Joe Biden will on Friday fly to Saudi Arabia, where he will attend a summit of Gulf allies and call for them to pump more oil. We expect crude oil prices to trade sideways to down with resistance at $98 per barrel with support at $92 per barrel. MCX Crude oil July contract has important support at Rs. 7450 and resistance at Rs. 7850 per barrel.