Gold and Crude Oil - 28 March 2023 - HDFC Securities

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

Gold prices edged lower on Tuesday, with spot gold prices at Comex were trading down by 0.24% at $1952.0 per ounce. Gold April future contract at MCX were trading down by 0.02% at Rs 59525 per 10 grams by noon session.

Gold prices correction extended on Tuesday after price fell more than 1.0% on previous session as easing concerns over the strength of the banking sector reduced the appeal of haven assets. Risk on sentiment improved on the prospect of more US support for the banking sector, after News that U.S. authorities were in early-stage deliberation about expanding emergency lending facilities. US dollar traded steady while bonds yield gained on optimism that stress in the banking sector could be contained. We expect gold prices should consolidate in range with negative bias and fall will extend if Comex spot gold break support of $1935 per ounce. Comex spot gold having support at $ 1917 per ounce and resistance at $1970 per ounce. MCX Gold Apr future having support at Rs 58080 per 10 gram and resistance at Rs 59100 per 10 grams.

Crude Oil prices extended gain on Tuesday with benchmark NYMEX WTI crude oil were trading up by 0.70% at $73.35 per barrel. Crude prices rallied more than 5.0% in the previous session, with traders focused on developments in the banking crisis as well as on supply concerns and indications of strengthening demand. NYMEX WTI oil rallied above resistance of $72.50 level as market worried about short-term supply concern after the halt of crude oil exports from the Kurdistan region, which previously average supplied about 450,000 bpd. Rising demand for riskier assets served as an additional positive for crude oil markets.

Crude oil prices short term trend turns positive and We expect WTI crude oil price will likely to rally towards $75.50 level per barrel. NYMEX WTI Crude oil prices face resistance at $75.50 per barrel and support at $70.80per barrel for the day. MCX Crude Oil April future having supports at Rs 6180 and resistance at Rs 5920 for the day.

Source : Equity Bulls

Keywords

Gold CrudeOil Commodities HDFCSecurities Bullion Energy