Mr. Tapan Patel, Senior Analyst (Commodities), HDFC securities
Gold prices traded firm with COMEX spot gold prices were trading marginal up near $1805 per ounce on Tuesday. Gold February future contract at MCX were trading near Rs. 47778 per 10 grams by noon session.
Gold prices traded under pressure with rally in US bond yields. The 10 year US Treasury yields rose to six week high at 1.63% triggering selling in gold prices. The precious metals are capping downside on mixed global cues with omicron worries and FED rate hike expectations. We expect gold prices to trade sideways to down for the day with COMEX spot gold support at $1790 and resistance at $1815 per ounce. MCX Gold February support lies at Rs. 47600 and resistance at Rs. 48000 per 10 gram.
Crude oil prices traded higher with NYMEX WTI Crude oil prices were trading 0.26% up near $76.28 per barrel for the day. Crude Oil prices traded up ahead of OPEC plus meeting to discuss plans to add supply in February 2022. However, the fuel demand outlook remained optimistic as the rising number of COVID-19 cases globally has tightened restrictive measures in the biggest fuel-consuming countries. OPEC plus nations will probably stick to their plan to add 400,000 barrels per day of supply in February when they meet today.
Crude oil prices are expected to trade sideways to up with resistance at $78 and support at $74 per barrel. MCX Crude oil January has support at Rs. 5630, resistance at Rs. 5760.