Gold and Crude Oil - June 8, 2023 - HDFC Securities

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

Comex Spot gold prices edged higher on Thursday, with spot gold price at Comex was trading at $1947.0 per ounce up by 0.33%. While Gold August future contract at MCX was trading up by 0.05% at Rs 59540 per 10 grams by noon session.

Gold prices traded marginally up after declining more than 1.0% in the previous session. On Wednesday gold prices came under pressured on the back a rally in US bond yields on expectations for further tightening, after Fed swaps at one point fully priced in a hike by July. Investors remain cautious after surprise rate increases by the Bank of Canada and the Reserve Bank of Australia this week have caused markets to raise their expectations that global central banks still have further to go in their tightening cycle, which are usually negative for non-interest-bearing gold. short term outlook remains gloomy for precious metals. We expect Comex gold prices to correct further if price break the key support level of $1933 per ounce. Comex spot gold is likely to find buyers around $1923/$1910 levels and while $1960 is the resistance for the day. MCX Gold August future is likely to find support at Rs 59080/58700 levels and resistance at Rs 59850/60080 levels.

Crude oil prices retreated on Thursday with NYMEX WTI Crude oil was trading down by 0.17% at $72.40 per barrel. Crude oil prices stuck in a narrow range over mixed fundamentals, as demand concerns over a global economic slowdown weighed on prices against an expected fall in supply from Saudi output cuts. Additionally, larger than expected build US gasoline inventories raised concerns over demand outlook from the world's biggest consumer. US gasoline inventories climbed by 2.7 million barrels against market expectations of 880,000-barrel rise.

We expect crude oil price likely consolidate within range with negative bias. NYMEX WTI crude oil has resistance at $74.40 per barrel and finds support at $71.20/ per barrel. MCX Crude Oil June futures has support at Rs 5820 per barrel and resistances at Rs 6080 per barrel.