Gold and Crude Oil - 15 March 2023 - HDFC Securities

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

Gold prices traded lower on Wednesday, with spot gold prices at Comex were trading down by 0.70% at $1888 per ounce. Gold April future contract at MCX were trading down by 0.65% at Rs 57112 per 10 grams by noon session.

Gold prices corrected on Wednesday on back of rally in US dollar and bond yields. US Dollar and bond yields traded higher after increased expectations for the Fed to hike rates by 25 basis points at the next meeting post US CPI inflation data. Gold prices has inverse correlation with interest rate and gold tends to decline in higher interest rate scenario. According to the CME's Fed Watch Tool, the probability of a 25 basis point rate hike at the March 21-22 FOMC meeting is now 92% from 78% just before the numbers were released. We expect gold prices should correct to $1880 and fall will extend if price break this support. On macro front US Retail sales and PPI data will be important for further direction. Comex spot gold having supports at $ 1880/1865 per ounce and resistance at $1910/$1923 per ounce. MCX Gold Apr future having support at Rs 56700 per 10 gram and resistance at Rs 57580 per 10 gram.

Crude Oil prices traded positive with benchmark NYMEX WTI crude oil were trading slightly higher by 1.20% at $72.10 per barrel. WTI Crude prices dropped to low of $70.80 per barrel Tuesday as the collapse of Silicon Valley Bank startled market sentiment and raised worries about a fresh financial crisis. However, OPEC bullish outlook on China's demand helped offset bearish global investor sentiment in the wake of the recent U.S. bank failures.

We expect Crude oil prices relief rally likely to see but under tone remain negative and selling pressure will see near resistance level, NYMEX WTI Crude oil prices face resistance at $73.8 per barrel and support at $70.80 per barrel. MCX Crude Oil Mar future having supports at Rs 5930 and resistance at Rs 6180 for the day.

Source : Equity Bulls

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Gold CrudeOil Commodities HDFCSecurities