MCX Crude oil May future gained by 1.39% and closed at 6487 level - HDFC Securities
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BULLION
MCX Gold June future ended with gain of 0.26% at 60001 on Monday as recovery seen in international market after weakness in US dollar and bond yields. Trades sentiment improved after data showed recover in gold demand from China. China’s gold consumption is 291.6 tons in the first quarter this year, up 12% y/y, according to the China Gold Association. Consumption of gold jewelry, gold bars and coins all saw a strong recovery, as consumer appetite grew with China’s post-Covid reopening.
Trading Strategy: We expect gold prices should trade within broader range and Comex spot gold likely to retest upper band of range at $2005. Comex spot gold having supports at $ 1980/$1965 and resistance at $2005/$2017. MCX Gold June future having support at Rs 59600 and resistance at Rs 60700.
ENERGY
MCX Crude oil May future gained by 1.39% and closed at 6487 level on Monday while both international benchmark oil futures rose more than 1% on Monday on optimism that holiday travel in China would increase demand in the world's largest oil importer. However further upside capped by traders worried about more interest rate hike by US which could negative impacts on economic activity and trim oil demand. While Natural Gas price continued consolidate in lower range.
Trading Strategy: MCX Crude oil May future has immediate resistance at 6500 once price cross this level it may rally towards 6640 level. While down side 6320 acts as strong support. We expect until price hold above 6320 level pullbacks in price likely to see. MCX natural gas May future has resistance at 211.0 level while price find support at 192.0 level for the day
BASE METALS
Base metals price remained under pressure on Monday as concerns about China's lackluster demand and caution ahead of next week's The U.S. Federal Reserve, the Bank of England and the European Central Bank are all expected to raise rates. Weak demand in top metals consumer China and rising concerns that the U.S. Treasury Department could hit its debt limit in the coming months were also seen keeping a lid on metals prices.
Trading Strategy: MCX Copper May future can fall further to 750/745 level after price broke support of 759 level. While upside price face resistance at 765.80, until price trades below 765.80 buying should avoid in copper. MCX Zinc May future hit fresh swing low of 239 level on previous session, now immediate next support at 235.80.
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