Gold and Crude Oil - March 16, 2023 - HDFC Securities

Mr. Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities

Gold prices traded marginally up on Thursday, with spot gold prices at Comex were trading up by 0.20% at $1922 per ounce. Gold April future contract at MCX were trading down by 0.40% at Rs 58110 per 10 grams by noon session.

Comex Gold prices surged to fresh swing high of $1937 per ounce while MCX Gold April future climbed over 1.40% to their highest since early February on Wednesday as a fresh crisis in the banking sector turned investors away from seemingly riskier assets and drove them to the safety of bullion. On investment demand front, gold is benefiting from an ETF inflow of 300,404 ounces Tuesday which was the largest single-day inflow since June of last year. Traders focus shift on the European Central Bank meeting later in the day for the first big test of how policymakers will respond to growing fears about banks. We expect gold prices should consolidate in range of $1895 to $1940 for the day. Comex spot gold having supports at $ 1895/1880 per ounce and resistance at $1924/$1940 per ounce. MCX Gold Apr future having support at Rs 57080 per 10 gram and resistance at Rs 58400 per 10 gram.

Crude Oil prices marginally recovered on Thursday with benchmark NYMEX WTI crude oil were trading slightly up by 0.70% at $68.40 per barrel. WTI crude oil prices sink to 15 months low, and prices fell below $66 per barrel on previous session. With diminishing growth forecasts and rising supply overshadowing China's reopening. Although US authorities have attempted to ease fears over a broader contagion in the banking sector, the financial turmoil of Swiss bank, Credit Suisse poses an additional threat to the global economy. At the same time, the IEA reported an increase in oil inventories, driving the supply of oil to an 18-months high. Short term sentiment remain bearish for Crude oil.

We expect Crude oil prices likely to move higher on back of short covering, but selling pressure likely to see at resistance level, NYMEX WTI Crude oil prices face resistance at $70.80 per barrel and support at $65.80 per barrel. MCX Crude Oil Mar future having supports at Rs 5480 and resistance at Rs 5900 for the day.

Source : Equity Bulls

Keywords

Gold CrudeOil Commodities HDFCSecurities