Quote on Crude Oil and Gold by Tapan Patel- Senior Analyst (Commodities), HDFC securities

Crude oil prices traded lower with benchmark NYMEX WTI crude oil prices plunged by 2.96% to $75.14 per barrel for the day. MCX Crude oil October futures fell by more than 3% near Rs. 5622 per barrel by noon session.

Crude oil prices halted rally reversed form three years highs on surprise inventory build-up. The US EIA report showed that weekly inventories rose by 2.3 mb in last week. Crude oil prices also traded down with fall in Natural gas prices after Russia announced boost supplies of the fuel to ease European shortages. Crude oil prices are expected to trade down with resistance at $78 and support at $72 per barrel. MCX Crude oil October has support at Rs. 5560, resistance at Rs. 5710.

Gold Price

Gold prices traded firm with COMEX spot gold prices were marginal up near $1763 per ounce on Thursday. Gold December future contract at MCX were trading flat at Rs. 46912 per 10 grams by noon session limiting gains on rupee appreciation.

Gold prices witnessed recovery with fall in dollar index and weaker US bond yields. The US 10 year treasury yields fell near 1.51% for the day supporting gold prices. Gold prices may limit gains on supportive US private payroll data. We expect gold prices to trade sideways to up with COMEX spot gold resistance at $1775 and support at $1750 per ounce. MCX Gold December support lies at Rs. 46700 and resistance at Rs.47100 per 10 gram.