On October 29, gold on the MCX traded lower following the widely anticipated decision by the US Federal Reserve to leave benchmark interest rates unchanged. Concurrently, December gold futures dropped by 0.06% to Rs. 1,43,620 per 10 grams, while December silver futures decreased by 0.68% to Rs. 1,93,000. In the energy markets, Brent crude futures retreated 1.10% to USD 114 per barrel, and US West Texas Intermediate (WTI) slipped 1.29% to USD 101.5 per barrel.
Domestic Gold Prices
24K gold was priced at Rs. 1,43,780 per 10 grams, and 22K gold was recorded at Rs. 1,31,798. Across different cities, Mumbai and Kolkata both tracked at Rs. 1,43,780, whereas Delhi registered Rs. 1,43,530 and Chennai recorded Rs. 1,44,310.
US Gold Prices
American gold prices declined on Thursday as market participants evaluated remarks from the Federal Reserve and Chair Kevin Warsh following the decision to keep rates steady, alongside anticipation of upcoming US inflation statistics. Spot gold retreated 0.7% to settle at USD 4,037.98 per ounce, whereas US gold futures for December delivery held steady at USD 4,049.80. Meanwhile, spot silver dropped 1.5% to USD 53.15 per ounce, platinum declined 1.5% to USD 1,515.70, and palladium decreased 0.6% to USD 1,004.25.
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Key Levels to Watch
“Today’s fall is purely because of persistent Middle East uncertainty and market positioning ahead of today’s inflation data,” noted Ajay Kedia, Director at Mumbai-based Kedia Commodities.
Additionally, the CME FedWatch Tool indicated that traders are currently factoring in roughly a 78% probability of a rate hike in December, down from 84% prior to the policy announcement.
XAU/USD is hovering near USD 4,038, displaying a bearish short-term outlook as spot prices stay beneath the 20-day Exponential Moving Average (EMA) of approximately USD 4,116. A 14-period Relative Strength Index near 39 points to muted momentum rather than oversold territory.
Looking upward, the initial resistance sits at the 20-day EMA around USD 4,116, and a daily close above this barrier is necessary to alleviate downward pressure. On the downside, the June low of USD 3,941.76 serves as the primary support level.
