Gold, Crude Oil and Base Metals - March 20, 2023 - HDFC Securities

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

Gold prices advanced on Monday, with spot gold prices at Comex were trading up by 0.40% at $1995 per ounce. Gold April future contract at MCX were trading up by 1.05% at Rs 59995 per 10 grams by noon session.

Comex Spot gold price rose to fresh 52 week high of $2005 per ounce while in domestic market MCX Gold April future hit all time high of Rs 60400 level per 10 grams on today's trading session. Despite of rescue deal for Credit Suisse and a concerted effort by central banks to restore market confidence could not eased investor fears and safe haven buying continues support yellow metals. Gold ETF holdings last week have reversed the early pattern of outflows and have now posted two large back-to-back daily inflows. We expect bullish momentum should continue in Gold and Comex spot gold rally will extend to $2070 level in short term. Comex Spot Gold having resistance at $2030/$2070 per ounce and support at $1975/$1950 per ounce, for the week. MCX Gold April future has resistance at Rs 61550 per 10 grams and support place at Rs 58700 per 10 grams.

Crude Oil prices traded negative with benchmark NYMEX WTI crude oil were trading lower by 2.05% at $65.40 per barrel on Monday. Crude oil prices have resumed the downtrend that pushed oil prices to 15-month lows on Monday. Crude Oil prices fell more than 12% last week with diminishing growth forecasts and rising supply, the collapse of SVB and financial instability have contributed to the recent slump. Recent OPEC report also indicated mix outlook for global oil demand, China's demand helped offset bearish global investor sentiment in the wake of the recent U.S. bank failures.

We expect Crude oil prices should trade with negative bias and further down side will extend if price break support of $64.80 per barrel. NYMEX WTI Crude oil prices face resistance at $69.80 per barrel and find supports at $61.70 per barrel. MCX Crude Oil April future having supports at Rs 5270 and resistances at Rs 5900 for this week.

Base metals prices consolidated within range over mixed outlook, concern over demand after traders worried about financial crisis continue weighed on prices while a weaker dollar and hopes for Chinese demand recovery capped down side. China's economic activity picked up in the first two months of 2023 as consumption and infrastructure investment drove recovery from pandemic disruption, despite challenges of weak global demand. Copper physical premium in Chinese market rose last week which reflects improvement in demand.

We expect base metals prices should trade in range with positive bias and correction in prices use for buying opportunity. MCX Copper March future having strong support at 735 per kg and resistance place at 775 per kg for the week.

Source : Equity Bulls

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Gold CrudeOil BaseMetals Commodities HDFCSecurities