Gold and Crude Oil - June 2, 2023 - HDFC Securities

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

Comex Spot gold prices traded up on Friday, with spot gold price at Comex was trading higher by 0.06% at $1978.80 per ounce. While Gold August future contract at MCX was trading up by 0.05% at Rs 60250 per 10 grams by noon session.

Gold prices advanced in Asian trading hours on Friday. Yellow metal rallied as sentiments improved after dovish comments from Philadelphia Federal Reserve President Patrick Harker argued that U.S. central bankers should not raise interest rates at their next meeting even though high inflation is coming down at a "disappointingly slow" pace. Markets now see a 77.2% chance of rates remaining unchanged in the June meeting. Meanwhile, dollar index and bond yields retreated from recent peak, dollar index was down by 0.73% and settled at 103.56 level in the previous session. Weakness in US dollar and expectation of a pause in the U.S. Federal reserve policy tightening campaign boosted precious metals' appeal. Comex spot gold is likely to find buyers in the range of $1965/$1950 per ounce and while $1995/$2009 per ounce is the resistance for the day. MCX Gold August future likely to find support at Rs 60080/59700 per 10 gram and resistance at Rs 60580/60750 per 10 grams.

Crude oil prices edged higher on Friday with NYMEX WTI Crude oil was trading up by 1.0% at $70.83 per barrel amid optimism over US debt ceiling deal which has passed by US Senate and putting an end investors' concerns that US might default. Additionally, expectation of a pause in the U.S. Federal reserve policy tightening campaign and better than estimated US macro data increased appetite for risk assets. US private payrolls increased by 278,000 in May, beating expectations for a rise of 170,000 signs of resilience in the US economy.

Meanwhile, Traders will now be looking ahead to an OPEC and its alliance meeting in Vienna over the weekend to discuss the group's production policy. For the day, NYMEX WTI Crude oil having resistances at $72.60/$74.80 levels and find supports at $70.30/ $68.60 levels. MCX Crude Oil June future having supports at Rs 5780/5735 and resistances at Rs 5925/6005.