Mr. Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities
Gold prices traded marginally up on Thursday, with spot gold prices at Comex were trading higher by 0.03% at $1816 per ounce. Gold April future contract at MCX were trading up by 0.05% at Rs 54940 per 10 grams by noon session.
Gold prices fluctuated in lower range as traders waited for fresh cues for further direction. Before the Federal reserve March meeting investor focus will now be on two important macro data US job market report due on tomorrow and next week US CPI inflation data which could influence Fed rate hike decision. We expect gold prices are going to remain sensitive to incoming data from US. Meanwhile ETF holdings continue to plummet with gold holdings yesterday shedding 226,383 ounces for a 6th straight daily declined. We expect Comex Gold prices likely to consolidate in range of $1805 to $1833 for the day. Comex Spot Gold having resistances at $1824/$1840 per ounce and supports at $1805/$1788 per ounce. MCX Gold April future has resistance at Rs 55170 per 10 grams and supports place at Rs 54580 per 10 grams.
Crude Oil prices traded lower with benchmark NYMEX WTI crude oil were trading down by 0.17% at $76.55 per barrel. Oil prices correction extended on Thursday as fears more aggressive U.S. interest rate hikes would hit demand. Recently oil prices rally supported by optimism about Chinese demand recovery, however sentiment turn negative after China reduce its GDP growth forecast that could reduce Oil demand. Meanwhile, US Crude inventories fell by 1.7 million barrels to 478.5 million barrels in the week ending March 3, against expectations of 0.4-million-barrel rise.
We expect Crude oil prices should correct further to $75.80 per barrel level, with NYMEX WTI Crude oil prices face resistance at $78.4/$80.0 per barrel and support at $75.80/$74.00 per barrel. MCX Crude Oil Mar future having supports at Rs 6220/6140 and resistance at Rs 6430 for the day.