Gold and Crude Oil - June 15, 2022 - HDFC Securities

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

Gold prices traded firm with spot gold prices at COMEX were trading over half a percent up near $1820 per ounce on Wednesday. Gold Aug future contract at MCX were trading 0.50% up near Rs. 50400 per 10 grams by noon session.

Gold prices halted decline with weaker dollar and fall in US bond yields. The dollar index was trading around 0.56% down while 10 year US Treasury yields were trading near 3.42% in the morning. Gold prices may cap upside on aggressive FED stance with expectations of 75 bps rate hike against previous census of 50 bps. We expect gold prices to trade sideways to up for the day with COMEX spot gold support at $1800 and resistance at $1840 per ounce. MCX Gold Aug support lies at Rs. 49800 and resistance at Rs. 50800 per 10 gram.

Crude Oil prices traded steady with benchmark NYMEX WTI crude oil prices were trading near $119 per barrel. Crude oil prices dropped below $120 per barrel on worries over fuel demand ahead of a U.S. Federal Reserve meeting which is expected to see the central bank to hike rates by at least 75 basis points to combat inflation. On the demand side, China's latest COVID outbreak, traced to a 24-hour bar in Beijing, has raised fears of a new phase of lockdowns. We expect crude oil prices to trade sideways to down with resistance at $122 per barrel with support at $116 per barrel. MCX Crude oil June contract has important support at Rs. 9120 and resistance at Rs. 9380 per barrel.