Gold and Crude Oil - March 10, 2023 - HDFC Securities

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

Gold prices traded up on Friday, with spot gold prices at Comex were trading higher by 0.15% at $1835 per ounce. Gold April future contract at MCX were trading up by 0.23% at Rs 55427 per 10 grams by noon session.

Gold prices traded within broader range of $1819 to $1850 last few sessions. Gold price especially very sensitive to interest rates and US dollar action. Today's US nonfarm payroll data could trigger further direction in Yellow metals. Strong jobs readings are threatening to the Fed and give them the latitude to be more aggressive without increased threats of recession that could pressure on yellow metals. Meanwhile Gold ETF holdings this week have seen outflows indicating that bargain-hunting investment buying has not surfaced yet on the recent slide in prices. We expect gold prices should consolidate within range before US nonfarm payroll data, volatility should increase post data. Comex spot gold having supports at $ 1804/1780 per ounce and resistance at $1845/$1875 per ounce. MCX Gold Apr future having support at Rs 54700 per 10 gram and resistance at Rs 55780 per 10 gram.

Crude Oil prices traded lower with benchmark NYMEX WTI crude oil were trading down by 1.19% at $74.84 per barrel. Oil prices were declined on Friday as traders remained cautious about frequent and steeper rate hikes by the U.S. Federal Reserve, concerns that have triggered a rout in energy prices over the last four day and WTI crude oil prices corrected almost 7.0% in last four sessions. Traders have worried about demand growth, with prices bounded by fears about a business cycle slowdown and rising interest rates, and China reduce its GDP growth forecast that could reduce Oil demand.

We expect Crude oil prices should trade with negative side and WIT Crude oil price will likely to retest $72.50 per barrel level, NYMEX WTI Crude oil prices face resistance at $77.0 per barrel and support at $72.50 per barrel. MCX Crude Oil Mar future having supports at Rs 6040 and resistance at Rs 6300 for the day.

Source : Equity Bulls

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Gold CrudeOil Commodities HDFCSecurities