Gold and Crude Oil - 23 March 2023 - HDFC Securities

Posted On : 2023-03-23 20:33:47( TIMEZONE : IST )

Gold and Crude Oil - 23 March 2023 - HDFC Securities

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

Gold prices advanced on Thursday, with spot gold prices at Comex were trading up by 0.40% at $1975.80 per ounce. Gold April future contract at MCX were trading higher by 0.70% at Rs 59160 per 10 grams by noon session.

Gold prices surged post Federal Reserve policy outcome as traders assessed the latest comments from the Federal Reserve as taking a dovish stance. Further sharp fall in dollar index and bond yields boosting appeal of precious metal. Dollar index dropped to a fresh seven-week low after U.S. Federal Reserve hinted it could pause interest rate rises following turmoil in the banking sector, though it also reiterated its commitment to fighting sticky inflation. Dollar index likely to retest 100.0 mark which could benefit for yellow metals. We expect positive trend in precious metal will continue and Comex spot gold prices could retest $1995 level per ounce in short term. Comex spot gold having supports at $ 1959/1940 per ounce and resistance at $1995/$2010 per ounce. MCX Gold Apr future having supports at Rs 58700/58580 per 10 gram and resistances at Rs 59400/59750 per 10 grams.

Crude Oil prices edged lower on Thursday with benchmark NYMEX WTI crude oil were trading down by 0.39% at $70.10 per barrel. Crude oil prices retreated after three days rally on back of short-term traders took profit and lack of following buying after higher inventory build-up in US. U.S. crude oil stockpiles rose unexpectedly last week to their highest in nearly two years, while gasoline and distillate inventories fell. Crude oil short term fundamentals remain moderate bearish.

We expect Crude oil prices should trade within range of $72.40 to $68.80 per barrel with negative bias for the day. NYMEX WTI Crude oil prices face resistance at $72.40 per barrel and support at $68.80 per barrel. MCX Crude Oil April future having supports at Rs 5680 and resistance at Rs 5970 for the day.

Source : Equity Bulls


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