Gold and Crude Oil - May 31, 2023 - HDFC Securities

Posted On : 2023-05-31 17:49:36( TIMEZONE : IST )

Gold and Crude Oil - May 31, 2023 - HDFC Securities

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

Comex Spot gold prices traded lower on Wednesday, with spot gold price at Comex was trading down by 0.19% at $1955 per ounce. While Gold August future contract at MCX was trading down by 0.20% at Rs 59880 per 10 grams by noon session.

Gold prices slightly retreated after price rose nearly 0.80% in the previous session. On Tuesday gold price moved higher on the back of safe haven buying after traders assessed the possible impact of a US debt ceiling deal that could add another concern for economy growth. The deal will aggravate the risk of recession by limiting government spending used to support US growth. Additionally, US bond yields retreated from recent peak, fall in yields supportive for non-yielding metal. We expect gold prices should trade within broader range with positive bias for the day. Comex spot gold having supports at $1935/$1923 per ounce and resistance at $1970/$1984 per ounce. MCX Gold August future having supports at Rs 59570/59300 per 10 gram and resistances at Rs 60180/60450 per 10 grams.

Crude oil prices edged lower on Wednesday with NYMEX WTI crude oil was trading down by 0.95% at $68.84 per barrel. Crude oil price extended loss on today's session after price declined more than 4.0% in the previous session as trades concern for weaking demand from top oil importer China after the release of weaker than estimated economic data. Chinses official manufacturing purchasing managers' index was 48.8 from 49.2 in April, indicated economic activity are losing momentum and which could hurt crude oil demand.

We expect crude oil price can correct further after price broke important support level in the previous session. For the day, NYMEX WTI Crude oil having resistances at $71.8/$74.0 levels and find supports at $67.80/ $66.0 levels. MCX Crude Oil June future having supports at Rs 5680/5575 and resistances at Rs 5820/5934.

Source : Equity Bulls


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