Gold, Crude Oil and Base Metals - Dec 19, 2022 - HDFC Securities

Mr. Dilip Parmar, Research Analyst, HDFC Securities.

Gold prices traded marginally up with Comex spot gold were trading at $1795 per ounce up by 0.32% on Monday morning session. MCX Gold February future is trading higher by 0.10% at Rs 54357 per 10 grams.

Gold prices advanced as weaker dollar index and steady bond yields. Dollar index plunged by 0.25% and consolidated in lower range, helped boost sentiment in Gold. We expect gold price remain sideway as investors focus shifted to US GDP data. Comex gold support at $1775/$1764 per ounce while price face resistance at $1812 per ounce for the day. MCX Gold February future has support at Rs 53880 and resistance at Rs 54700 per 10 gram.

Crude oil prices traded positive with benchmark WTI Crude oil is trading at $ 75.05 per barrel up by 0.80%. Crude Oil prices rally extended on Monday morning session as optimism from china's reopening and forecast of global oil demand recovery for the next year by OPEC and IEA.IEA raised its 2023 oil demand growth estimate to 1.7 million bpd for a total of 101.6 million bpd. Meanwhile another bullish news that an announcement by the U.S. Energy Department on last week that it will begin repurchasing crude oil for the Strategic Petroleum Reserve also supported outlook for stronger prices. We expect crude oil prices will trade positive side with resistance at $77.80 per barrel and support at $72.20 per barrel. MCX Crude oil Jan future has important support at Rs. 6070 and resistance at Rs. 6480 per barrel.

Base metals price traded positive with copper price trading up by 1.20% at Rs 703 on back of supply concern and optimism about Chinese demand. China will focus on stabilising its economy in 2023 and step up policy adjustments to ensure key targets are hit, said a statement last Friday. However, except copper other base metals traded sideway as still, weighing on the sentiment was a hawkish U.S. Federal Reserve policy that lead to fears that longer interest rate hikes would exacerbate demand for metals.

We expect base metals to trade sideways to positive with MCX Copper December future support lies at Rs. 695 and resistance at Rs. 717. MCX Aluminium December future support lies at Rs. 209, resistance at Rs. 214. MCX Zinc December future has support at Rs. 269 with resistance at Rs. 275. MCX Lead December future has support at 182.40 and resistance at Rs 187.0.

Source : Equity Bulls

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Gold CrudeOil BaseMetals Commodities HDFCSecurities