Gold and Crude Oil - June 8, 2022 - HDFC Securities

Mr. Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Gold prices traded weak with spot gold prices at COMEX were trading 0.17% down near $1848 per ounce on Wednesday. Gold Aug future contract at MCX were trading flat near Rs. 50958 per 10 grams by noon session.

Gold prices kept narrow trading range as traders and investors are waiting for cues from US inflation and US FOMC meeting. The stronger dollar index and pull back in US bond yields have kept prices in range for the day. U.S. Treasury Secretary Janet Yellen said on Tuesday that inflation might remain high, and the Biden administration is likely to increase the 4.7% inflation forecast for this year in its budget proposal. We expect gold prices to trade sideways to down for the day with COMEX spot gold support at $1840 and resistance at $1860 per ounce. MCX Gold Aug support lies at Rs. 50800 and resistance at Rs. 51200 per 10 gram.

Crude Oil prices traded higher with benchmark NYMEX WTI crude oil rose by 0.38% to $119.86 per barrel. Crude oil prices traded higher supported by tight supplies and recovering fuel demand as China continued easing COVID-19 curbs in top cities. Tuesday's U.S. crude supply data from the American Petroleum Institute showed a build of 1.845 million barrels for the week ended June 3. Global crude and oil product supplies remain tight as the West poise sanctions on oil exports from major producer Russia. Most refineries globally are at a stage close to their maximum capacities to meet rising demand from pandemic recovery and replace lost Russian supplies. We expect crude oil prices to trade up with resistance at $123 per barrel with support at $115 per barrel. MCX Crude oil June contract has important support at Rs. 9210 and resistance at Rs. 9450 per barrel.

Source : Equity Bulls

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Gold CrudeOil HDFCSecurities Commodities