On October 26, gold traded higher on the MCX amid global uncertainty and elevated oil prices. Specifically, December gold futures climbed 0.39% to reach Rs. 1,42,580 per 10 grams, whereas December silver futures increased by 0.19% to Rs. 1,96,093. Meanwhile, Brent crude futures dropped 1.89% to USD 114.5 per barrel, and US West Texas Intermediate (WTI) climbed 2.20% to USD 101 per barrel.
Domestic Gold Prices
24K gold increased by Rs. 17 to touch Rs. 1,42,750 per 10 grams, and 22K gold grew by Rs. 15 to hit Rs. 1,30,850. Looking at specific cities, Mumbai and Kolkata recorded prices of Rs. 1,42,750, Delhi stood at Rs. 1,42,900, and Chennai registered Rs. 1,42,750.
US Gold Prices
American gold prices advanced as oil prices declined and US President Donald Trump announced on Sunday, “There will be no strikes today.” Spot gold moved up 0.47% to USD 4,014.55 an ounce, and US gold futures scheduled for December delivery traded 0.50% higher at USD 4,027.82 per ounce.
Additionally, spot silver increased by 0.55% to USD 52.20 per ounce, palladium went up 0.59% to USD 1,052.85, and spot platinum dropped 0.11% to USD 1,551.48 per ounce.
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Key Levels to Watch
“Heightened inflation concerns suggest that major central banks of the world won’t be able to ease monetary policies as quickly as they want to. All that’s working against the gold and silver market bulls at present,” said Jim Wyckoff, a market analyst at American Gold Exchange.
Wyckoff further noted that the selloff in technology stocks has triggered margin calls for equity investors and traders, forcing them to liquidate their gold and silver holdings.
The XAU/USD pair is currently trading at USD 4,014, showing a bearish near-term bias as it remains positioned below the 20-day Exponential Moving Average (EMA) of roughly USD 4,136. The Relative Strength Index (RSI) sits at 35 near the bottom of its range, pointing to ongoing downward pressure while stopping short of extreme oversold territory.
Regarding price boundaries, the 20-day EMA near USD 4,136 serves as the primary resistance level that must be surpassed to alleviate the prevailing bearish outlook. Conversely, the critical support level on the downside is marked by the late June low near USD 3,942.
