Gold and Crude Oil - June 10, 2022 - HDFC Securities

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

Gold prices traded weak with spot gold prices at COMEX were trading marginal down near $1846 per ounce on Friday. Gold Aug future contract at MCX were trading 0.24% down near Rs. 50882 per 10 grams by noon session.

Gold prices witnessed selling on Thursday with dollar rally and surge in US bond yields. The dollar index rose above 103 while 10 year US Treasury yields rose by 0.42% to 3% on Friday. The US inflation data speculation has lowered investors' appetite for gold while traders are cautious ahead of US FOMC meet in coming week. We expect gold prices to trade sideways to down for the day with COMEX spot gold support at $1830 and resistance at $1860 per ounce. MCX Gold Aug support lies at Rs. 50700 and resistance at Rs. 51200 per 10 gram.

Crude Oil prices traded weak with benchmark NYMEX WTI crude oil fell by 0.22% to $121.22 per barrel. Crude oil prices traded under pressure but remained above $120 per barrel as fears over new COVID-19 lockdown measures in Shanghai outweighed solid demand for fuels in the United States, the world's top consumer. Shanghai and Beijing went back on a fresh COVID alert on Thursday after parts of China's largest economic hub imposed new lockdown restriction and the city announced a round of mass testing for millions of residents. Meanwhile, peak summer fuel demand in the United States continues to boost demand driven growth. We expect crude oil prices to trade sideways to up with resistance at $125 per barrel with support at $118 per barrel. MCX Crude oil June contract has important support at Rs. 9270 and resistance at Rs. 9560 per barrel.