Gold and Crude Oil - 22 Feb 2023 - HDFC Securities

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

Gold prices traded up on Wednesday, with spot gold prices at Comex were trading up by 0.33% at $1841 per ounce. Gold April future contract at MCX were trading marginally up by 0.05% at Rs 56180 per 10 grams by noon session.

Comex Spot Gold prices consolidated in range of $1833 to $1855 last few sessions, as investors awaited the minutes of the U.S. Federal Reserve's latest policy meeting that could offer clues on further interest rate hikes. The dollar index hovered near recent high on Wednesday, as economic data continues to point to the resilience of the U.S. economy. Manufacturing activity in the US unexpectedly rebounded in February, hitting its highest level in eight months. We expect gold price should retest $1850/1855 levels per ounce until prices hold above $1833 level per ounce. Comex Spot Gold having resistances at $1855/$1870 per ounce and support at $1823 per ounce, fall below this level will extend downside to $1805 level. MCX Gold April future has resistance at Rs 56540 per 10 grams and supports place at Rs 55970/55700 per 10 grams.

Crude Oil prices traded down with benchmark NYMEX WTI crude oil were trading lower by 1.09% at $75.60 per barrel. Oil prices settled lower on Tuesday as ample supply and firm dollar continues weighed on prices. In short term markets are well supplied, US Crude oil stockpiles in last week rich to highest level since June 2021. While Russia's oil output so far in February has been in line with production in previous months.

We expect Crude oil prices will likely to trade negative side and selling pressure will see on pullback. NYMEX WTI Crude oil prices face resistance at $76.40/$77.50 per barrel and support at $74.0 per barrel. MCX Crude Oil Mar future having supports at Rs 6240/6180 and resistances at Rs 6450/6520 for the day.

Source : Equity Bulls

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Gold CrudeOil Bullion Commodities HDFCSecurities