Gold and Crude Oil - March 21, 2023 - HDFC Securities

Posted On : 2023-03-21 20:43:55( TIMEZONE : IST )

Gold and Crude Oil - March 21, 2023 - HDFC Securities

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

Gold prices traded down on Tuesday, with spot gold prices at Comex were trading down by 0.59% at $1970 per ounce. Gold April future contract at MCX were trading down by 0.45% at Rs 59240 per 10 grams by noon session.

Gold prices extended correction on Tuesday on back of short-term traders took profit after recent rally in price and fears of a full-blown banking meltdown eased. Now Investors’ focus turned to a Federal Reserve policy decision on Wednesday which could provide further direction for yellow metals. Market estimated a roughly 70% chance of a 25-basis point increase, however center of attention on the Federal Reserve further policy guidance. We expect before the Fed policy meeting outcome further long unwinding likely to see in gold and Comex spot gold price should retest $1955 support level. Comex spot gold having supports at $ 1955/1940 per ounce and resistance at $2005/$2019 per ounce. MCX Gold Apr future having support at Rs 58700 per 10 gram and resistance at Rs 60040 per 10 gram.

Crude Oil prices traded higher on Tuesday with benchmark NYMEX WTI crude oil were trading up by 0.80% at $68.40 per barrel. Crude Oil prices recovered on Tuesday after prices fell to fresh swing low on Monday. Sentiment was improved after an announcement of the agreement, major central banks, including the U.S. Federal Reserve and European Central Bank, indicated that they would enhance market liquidity and support other banks.

We expect Crude oil prices should trade positive side and short covering rally could trigger further upside in Crude oil. NYMEX WTI Crude oil prices face resistance at $70.50 per barrel and support at $65.40 per barrel. MCX Crude Oil April future having supports at Rs 5480 and resistance at Rs 5840 for the day.

Source : Equity Bulls


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