Gold, Crude Oil and Base Metals - March 13, 2023 - HDFC Securities

Gold prices traded higher on Monday, with spot gold prices at Comex were trading up by 0.70% at $1880 per ounce. Gold April future contract at MCX were trading up by 0.80% at Rs 56595 per 10 grams by noon session.

Gold prices surged to six weeks high on Monday morning trade. Gold prices jumped nearly 2.50% from Friday's low, rally supported by correction in US dollar and safe haven demand. Traders flocked to the haven asset amid a mixed US jobs report and a widening bank rout in the financial industry. US payrolls rose in February by more than expected while a broad measure of monthly wage growth slowed, offering a mixed picture. This mixed macro data will place greater emphasis on the upcoming US CPI data for further guidance of Federal Reserve interest rate hike path. We expect bullion prices will consolidate in broader range with positive bias. Comex Spot Gold having strong resistance at $1895/$1920 per ounce and support at $1860/1835 per ounce, for the week. MCX Gold April future has resistance at Rs 57300 per 10 grams and support place at Rs 56040 per 10 grams.

Crude Oil prices traded positive with benchmark NYMEX WTI crude oil were trading higher by 0.20% at $77.0 per barrel on Monday. Crude oil prices traded in choppy range over mixed fundamentals a larger-than-expected draw in U.S. crude stocks contended with worries that more aggressive U.S. interest rate rises would strain economic growth and therefore dent oil consumption. Market sentiment was fragile as traders find temporary equilibrium.

Crude Oil price on weekly chart consolidated within range and price expect to follow the same trend this week with negative bias. However, traders keep eye on released of this week OPEC monthly report and IEA monthly report for further direction. NYMEX WTI Crude oil prices face resistance at $78.0. per barrel and supports at $72.50 per barrel. MCX Crude Oil Mar future has strong supports at Rs 6070 and resistances at Rs 6580 for this week.

Base metals prices traded positive on Monday as bargain hunter activate on optimism about Chinese demand. Base metals price corrected last week after the Federal Reserve has frequently made hawkish statements. Traders will now to continue to pay attention to the US inflation data that could influence Federal Reserve decision on interest rate hike. This week Investors focus shifted on US sudden collapse of Silicon Valley Bank and an unexpected rise in US unemployment that could weigh on base metals price.

Base Metals prices should trade in lower range and selling pressure will likely to see on pullback. This week important macro data includes US and China industrial production and retail sales that could impact on base metals prices. MCX Copper March future having strong support at 740.0 per kg and resistance place at 770 per kg for the week.

Source : Equity Bulls

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Gold CrudeOil BaseMetals Commodities HDFCSecurities