Gold and Crude Oil - Feb 25, 2022 - HDFC Securities

Mr. Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices traded higher with COMEX spot gold prices were trading 0.49% up near $1913 per ounce on Friday. Gold April future contract at MCX were trading 1.10% down near Rs. 50958 per 10 grams by noon session pressured by rupee depreciation.

Gold prices pared some previous gains declined from 17 months high after Russia invaded Ukraine and US imposed sanctions on Russia which investors are considering weaker than expected. The traders and investors continue to re-assess the situation surrounding the Russian invasion of Ukraine as well as further sanctions against Russia. Gold prices at MCX are trading weak pressured by a stronger rupee. We expect gold prices to trade sideways to up for the day with COMEX spot gold support at $1870 and resistance at $1970 per ounce. MCX Gold April support lies at Rs. 50600 and resistance at Rs. 51500 per 10 gram.

Crude oil prices traded higher with benchmark NYMEX WTI crude oil rose by 2% to $94.77 per barrel on Friday. Crude Oil prices rose with Russia's invasion of Ukraine driving global supply concerns. The traders and investors are also bracing for NATO to react and the potential impact of trade sanctions on Russia, the third-largest crude exporter globally. However, Crude oil prices may cap upside with a rise in US inventories and energy supply assurance from Russia. US EIA data showed a build of 4.515 million barrels in the week to Feb. 18. We expect crude oil prices to trade sideways to up with resistance at $98 per barrel with support at $92 per barrel. MCX Crude oil March contract has important support at Rs. 7050 and resistance at Rs. 7250 per barrel.