Bullion prices to consolidate in broader range with positive bias; check gold, silver support, resistance levels

Bullion prices to consolidate in broader range with positive bias; check gold, silver support, resistance levels

By Saumil Gandhi

Commodity prices advanced with most of the commodities posting a gain for the week. Bullion prices rebounded from multi-month lows and closed for a weekly gain. Crude oil price soared by 4.40% as optimism for demand recovery from China and India, with China’s oil imports likely to hit a record high in 2023 and demand from India, the world’s third-biggest oil importer surging. While Natural gas prices surged to a five-week high on the back of anticipated stronger demand in the upcoming week after the latest forecasts continued to show below-normal temperatures during the second week of March in the US. Base metals prices rose between 2% to 4% last as sentiment improved after stronger Chinese Manufacturing PMI Data, investors’ optimism about further demand recovery for Industrial metals.

We expect bullion prices will consolidate in a broader range with a positive bias, however selling pressure will likely see at a major resistance level. Comex spot gold has resistances at $1870/1895 per ounce and support at $1823/1805 per ounce. MCX Gold April future has resistance at Rs 56380 per 10 grams and support place at Rs 55140 per 10 grams. Comex Spot silver has resistances at $21.95/$22.40 per ounce and support at $20.40 per ounce. MCX Silver May future price face resistance at Rs 66900 per 1kg and find support at Rs 63200 per 1 kg for this week.

(Saumil Gandhi is a Senior Analyst (Commodities) at HDFC Securities. Views expressed are the author’s own.)