By Mr. Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities.
Gold prices traded lower on Thursday, with spot gold price at Comex was trading down by 0.21% at $1984.0 per ounce. Gold June future contract at MCX was trading down by 0.20% at Rs 59799 per 10 grams by noon session.
Gold price traded down as US dollar moved higher after yesterday data showed that the US personal consumption expenditure price rose more than estimated while initial Jobless claims also unexpectedly fell in previous week. The data fueled concerns that inflation will remain sticky in the coming months and attract more policy tightening by the Fed. Meanwhile market discounted another 25-basis point rate hike by Federal Reserve in its next week policy meeting. Higher interest rate scenario negative for non-yielding metal. Investor focus will be on today's US PCE price index data which could provide direction in yellow metal. Technically, we expect gold price can fall further once price break support of $1965 per ounce. Buying should avoid until price traded below $2019 per ounce. Comex spot gold having supports at $ 1965/$1940 per ounce and resistances at $2005/$2019 per ounce. MCX Gold June future having supports at Rs 59410/59180 per 10 gram and resistance at Rs 60300 per 10 grams.
Crude oil price extended fall on Friday with benchmark NYMEX WTI crude oil was trading down by 1.0% at $73.99 per barrel as recession fear and uncertainty on further interest rate hikes raised concerns about future fuel demand. Additionally increased export from Russia weighed on price. Crude oil prices wiped out all its gain post OPEC and its alliance cut additional output on 2 April.
Short term fundamentals turn moderate bearish in crude oil market and price likely to correct further from current level. NYMEX WTI Crude oil prices having resistances at $75.80/$77.00 per barrel and supports at $73.50/$72.0 per barrel for the day. MCX Crude Oil May future has support at Rs 5995 and resistance at Rs 6300.