Gold and Crude Oil - April 5, 2023 - HDFC Securities
Posted On:
2023-04-05 17:26:47 (Time Zone: IST)
By Mr. Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities.
Gold prices traded slightly up on Wednesday, with spot gold prices at Comex were trading up by 0.05% at $2023.0 per ounce. Gold June future contract at MCX were trading down by 0.10% at Rs 60895 per 10 grams by noon session.
Gold prices steady on Wednesday after sharp rallied in previous session. Comex spot gold prices surged more than 1.80% at $2025 per ounce on Tuesday highest level since March 2022 while domestic market gold prices in MCX crossed 61000 a fresh life time high on back of lower than estimated US Jolts job opening data. US job openings pointed to a slowdown in the labour market, fueled expectation that the Fed may not need to raise rates much further and could even pause the tightening cycle. Traders now see a 56.9% probability the Fed will leave the fed funds rate steady next month.
We expect gold prices bullish momentum will likely to continue and Comex spot gold price should retest $2065 per ounce level in short term. On macro front traders' focus will be on today's US ADP nonfarm data which could added further volatility in yellow metal. Comex spot gold having supports at $ 1995/$1980 per ounce and resistances at $2040/$2065 per ounce. MCX Gold June future having support at Rs 60300 per 10 gram and resistance at Rs 61700 per 10 grams.
Crude Oil prices traded flat to positive on Wednesday with benchmark NYMEX WTI crude oil were trading marginally up by 0.05% at $80.80 per barrel. WTI Crude oil price rallied above $81.0 per barrel this week as bullish momentum continued after OPCE and its alliance decided to cut further production from May through the rest of the year. Additionally Crude oil inventories in the US fell by big numbers again this week, shedding 4.346 million barrels, the API data showed on Tuesday. Traders focus now shifted to short term supply concern.
We expect crude oil price will likely consolidate in upper range with positive bias for the day. Traders' focus will be on today's EIA inventory data. NYMEX WTI Crude oil prices face resistance at $82.80. per barrel and support at $77.50 per barrel for the day. MCX Crude Oil April future having supports at Rs 6480 and resistance at Rs 6800 for the day.
