Gold and Crude Oil - Feb 21, 2023 - HDFC Securities

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

Gold prices traded weak on Tuesday, with spot gold prices at Comex were trading lower by 0.50% at $1831 per ounce. Gold April future contract at MCX were trading down by 0.33% at Rs 56029 per 10 grams by noon session.

Gold prices traded in choppy range in previous session as traders waited for more macro data to gauge the U.S. Federal Reserve's rate-hike strategy. Investors are now awaiting minutes of the Fed's latest policy meeting due to be released on Wednesday. The dollar index hovered near recent peak before released of FOMC meeting minutes on Wednesday. If rally in dollar index will extend above its recent high that could negative for gold price. Comex Spot Gold having strong resistance at $1859 per ounce and support at $1817 per ounce, fall below this level will extend downside to $1805 levels. MCX Gold April future has resistance at Rs 56380 per 10 grams and supports place at Rs 55980/55700 per 10 grams.

Crude Oil prices traded up with benchmark NYMEX WTI crude oil were trading higher by 0.60% at $77.10 per barrel. Oil prices traded sideway on Monday as thin volume on back of holiday in US market. Crude oil price resumed trading on Tuesday with positive side as market optimistic about Chinese demand recovery. China's oil imports likely to hit a record high in 2023. China doubled its purchases of Urals oil in the first half of February compared to the same period of January amid more attractive pricing and as Chinese demand rebounds after COVID-related lockdowns.

We expect Crude oil prices will consolidate in range with selling pressure will see near resistance level. NYMEX WTI Crude oil prices face resistance at $77.80/$78.40 per barrel and support at $76.40 per barrel. MCX Crude Oil Mar future has strong support at Rs 6270 and resistance at Rs 6510 for the day.

Source : Equity Bulls

Keywords

Gold CrudeOil Commodities HDFCSecurities Comex