Gold and Crude Oil - April 6, 2023 - HDFC Securities
2023-04-06 22:30:58 (Time Zone: IST)
By Mr. Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities.
Gold prices traded down on Thursday, with spot gold prices at Comex were trading lower by 0.09% at $2019.0 per ounce. Gold June future contract at MCX were trading down by 0.05% at Rs 60823 per 10 grams by noon session.
Gold prices consolidated in upper range amid expectation of slower interest rate hike cycle and slightly pullback in Dollar index. Comex spot gold hovering above $2,000 per ounce with traders assessing the Federal Reserve's interest-rate path and expecting that the Fed may pause the tightening cycle following weaker-than-expected economic data from the US. The US service sector PMI expanded in March at a much slower pace than projected on considerably softer new orders growth and business activity. Recent US macro data increase worried among the investors and shifted to safe haven buying. We expect gold prices bullish momentum should continue until Comex spot gold prices hold above $1980 per ounce level and buying likely to see near support area. Comex spot gold having supports at $ 1994/$1980 per ounce and resistances at $2035/$2060 per ounce. MCX Gold June future having support at Rs 60080 per 10 gram and resistance at Rs 61400 per 10 grams.
Crude Oil prices edged lower on Thursday with benchmark NYMEX WTI crude oil were trading down by 0.50% at $80.17 per barrel. Crude oil rally paused on Thursday after weak U.S. macro data signalled cooling economic conditions which may hit oil demand. The data offset market's reaction to earlier OPEC+ cuts and the recent reduction of U.S. crude and fuel stockpiles. U.S. crude inventories fell 3.7 million barrels last week, about 1.5 million barrels more than forecast.
We expect crude oil price should rebound from support level and rally will likely to expand once WIT Crude oil cross $82.80 level. NYMEX WTI Crude oil prices face resistances at $82.80/$84.0 per barrel and support at $77.0 per barrel for the day. MCX Crude Oil April future having supports at Rs 6470 and resistance at Rs 6700 for the day.