Gold and Crude Oil - March 24, 2023 - HDFC Securities

Posted On : 2023-03-24 17:44:04( TIMEZONE : IST )

Gold and Crude Oil - March 24, 2023 - HDFC Securities

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

Gold prices eased on Friday, with spot gold prices at Comex were trading down by 0.06% at $1984.0 per ounce. Gold April future contract at MCX were trading down by 0.30% at Rs 59388 per 10 grams by noon session.

Comex spot gold prices retreated on Friday as lack of follow up buying after price has reached near resistance level of $2005 per ounce on previous session. Risk on sentiment improved after U.S. Treasury Secretary Janet Yellen on Thursday sought to reassure jittery investors that American bank deposits were safe and promised policymakers had more firepower to battle any crisis. So far this week gold prices have surged almost 2.50% on back of sharp fall in US dollar and bond yield and traders expect U.S. central bank may pause its rate-hike cycle. We expect gold prices should consolidate in range of $1960 to $2005 per ounce for the day. Comex spot gold having support at $ 1960 per ounce and resistance at $2010 per ounce. MCX Gold Apr future having support at Rs 58700 per 10 gram and resistance at Rs 59820 per 10 grams.

Crude Oil prices traded lower on Friday with benchmark NYMEX WTI crude oil were trading down by 0.35% at $69.95 per barrel. Crude oil prices remain under pressure on back of higher supply and fear of slowing demand. Recession fears continue to loom over crude oil markets and both benchmarks fell to recent swing low. Additionally, the U.S. reluctance to refill the SPR, and strikes in France all hinder demand also weighed on prices.

We expect Crude oil prices should trade with negative bias and WTI crude prices likely to correct $66.20 per barrel. NYMEX WTI Crude oil prices face resistance at $70.80 per barrel and support at $66.20 per barrel. MCX Crude Oil April future having supports at Rs 5570 and resistance at Rs 5900 for the day.

Source : Equity Bulls


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