Gold and Crude Oil - Sep 22, 2023 - HDFC Securities

Posted On : 2023-09-22 18:06:38( TIMEZONE : IST )

Gold and Crude Oil - Sep 22, 2023 - HDFC Securities

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

Gold prices traded flat to positive on Thursday, with the spot gold price at Comex trading up by 0.25% at $1925 per ounce. While the gold October future contract at MCX is trading slightly higher by 0.06% at Rs 58860 per 10 grams.

Gold prices recovered after a decline to a weekly low of $1,913 in the previous session as markets digested hawkish commentary from the Federal Reserve but traded within range. Since the end of July, the price of the precious metal has been relatively stable in the range of $1,900 and $1,950 per ounce as drop buying continues to counteract withdrawals from exchange-traded funds.

Going forward, gold traders will keep an eye on today's US S&P Global PMI preliminary data for further direction. Technically, we believe gold prices are likely to see some recovery in today's session, but the trend will remain bearish until the price trades below the $1953 level. MCX Gold October future has resistances at Rs. 59125/59350 and supports at Rs. 58680/58450 for the day.

In response to concerns that a Russian restriction on gasoline exports might further restrict global oil supply, WTI crude futures rose above $90 a barrel and were trading at $90.57, up by more than 1.0% against the previous close. The Russian government said on Thursday that it will temporarily prohibit the export of petrol and diesel to stabilise gasoline prices on the domestic market. Widely tracked measures of supply and demand reinforce signals that the market is tightening. Meanwhile, stockpiles in Cushing, Oklahoma, dropped to 23 million barrels, only around 2 million barrels away from minimum operational levels.

Crude oil prices are expected to trade in a broader range, with a moderately positive bias. MCX crude oil October future has support at 7380 and resistance at 7650. The price is expected to trade in this range. NYMEX WTI Crude Oil has resistance at $92.05 and support at $88.80 for the day.

Source : Equity Bulls


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