Gold and Crude Oil - 08 March 2023 - HDFC Securities

Gold prices traded down on Wednesday, with spot gold prices at Comex were trading lower by 0.05% at $1814 per ounce. Gold April future contract at MCX were trading down by 0.11% at Rs 54960 per 10 grams by noon session.

Gold prices extended previous session loss and prices fell to one week low after hawkish Comment from Federal reserve chair Powell. Gold prices down side trigged on previous session after Dollar index surged to three months high. Traders anticipated that Fed's policy rate have priced in a 50 basis-point rate hike at the U.S. central bank's March policy meeting following Powell's hawkish comment. Although yellow metal is considered a hedge against inflation, interest rate hikes to control rising prices tend to decrease the appetite for zero-yield bullion. We expect Comex gold prices should likely to retest support of $1804 per ounce and down side will extend to $1791 per ounce once price fall below $1804 level. Comex Spot Gold having resistances at $1825/$1840 per ounce and supports at $1804/$1791 per ounce. MCX Gold April future has resistance at Rs 55300 per 10 grams and supports place at Rs 54600 per 10 grams.

Crude Oil prices traded lower with benchmark NYMEX WTI crude oil were trading down by 0.30% at $77.40 per barrel. Oil prices fell more than 3.0% on Tuesday on back of fears more aggressive U.S. interest rate hikes would hit demand. However, further down side capped as industry data showed a draw in U.S. crude oil inventories. U.S. crude inventories fell by about 3.8 million barrels in the week ended March 3. Traders also looking for today's EIA inventory report. Crude Oil prices traded within narrow range last few sessions over mix fundamentals.

We expect Crude oil prices consolidate in range with negative bias, with NYMEX WTI Crude oil prices face resistance at $78.8/$80.40 per barrel and support at $75.60 per barrel. MCX Crude Oil Mar future having supports at Rs 6280/6230 and resistance at Rs 6480 for the day.

Source : Equity Bulls

Keywords

Gold CrudeOil HDFCSecurities