Gold and Crude Oil - June 6, 2023 - HDFC Securities

Posted On : 2023-06-06 18:44:37( TIMEZONE : IST )

Gold and Crude Oil - June 6, 2023 - HDFC Securities

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

Comex Spot gold prices traded slightly up on Tuesday, with spot gold price at Comex was trading at $1962.0 per ounce up by 0.01%. While Gold August future contract at MCX was trading up by 0.17% at Rs 59955 per 10 grams by noon session.

Gold prices were steady after rising 0.70% in the previous session as weak US service-sector data which indicated a less-upbeat assessment of the US economy and renewed safe-haven demand. The ISM Services Purchasing Managers Index fell to 50.3% last month, down from April's reading of 51.9%. Post data market players are factoring in a possibility of pause in its rate hike cycle by FOMC which could benefit for non-yielding metal. Gold investors are once again focused on US monetary policy following the resolution of the debt-ceiling standoff. Looking forward, we expect gold prices should trade within range of $1945 to $1975 per ounce with positive bias. Comex spot gold is likely to find buyers in the range of $1945/$1933 per ounce and while $1975/$1994 per ounce is the resistance for the day. MCX Gold August future likely to find support at Rs 59540 per 10 gram and resistance at Rs 60380 per 10 grams.

Crude oil prices edged lower on Tuesday, with NYMEX WTI Crude oil was trading down by 2.35% at $70.45 per barrel as traders weighed the outlook for supply and demand after Saudi Arabia's surprise pledge for extra supply cuts. On Monday, crude oil prices surged to a two-week high following Saudi Arabia's voluntary decision to cut output by 1 million barrels a day in July. However, oil prices giving up most of the gains during the session as traders assessed the outcome of the voluntary cut will have a minimal impact on the oil market.

For the day, we expect the crude oil price to likely correct further after a sharp reversal in the previous session. NYMEX WTI crude oil has resistance at $72.05 per barrel and finds support at $68.95/ per barrel. MCX Crude Oil June futures have supports at Rs 5745 per barrel and resistances at Rs 6005 per barrel.

Source : Equity Bulls


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