On October 6, gold registered losses on the MCX amid persisting geopolitical tensions between the US and Iran. December gold futures dropped 0.14% to settle at Rs. 1,49,100 per 10 grams, whereas December silver futures dropped 0.21% to Rs. 2,25,611.
In the energy markets, Brent crude futures advanced 0.25% to reach USD 100.6 per barrel, and US West Texas Intermediate (WTI) climbed 0.23% to USD 89.64 per barrel.
Domestic Gold Prices
Rates for 24K gold decreased by Rs. 16 to Rs. 1,49,020 per 10 grams, and 22K gold fell by Rs. 13 to Rs. 1,36,600. Across major cities, Mumbai and Kolkata recorded prices matching the national rate at Rs. 1,49,020, while Delhi stood at Rs. 1,49,170 and Chennai at Rs. 1,49,020.
US Gold Prices
Bullion values in the US softened on Tuesday, weighed down by a stronger greenback and climbing Treasury yields. Even so, the decline remained checked due to diminishing expectations regarding a Federal Reserve interest rate hike.
Spot gold pulled back 0.3% to USD 4,128.83 per ounce, while US gold futures hovered near USD 4,155.90. Among other precious metals, spot silver dropped 0.6% to USD 60.69, platinum declined 0.5% to USD 1,712.20, and palladium slipped 0.5% to USD 1,166.86.
Also Read: India Gold Imports Could Hit USD 90B as Kotak Warns on CAD Risk
Key Levels to Watch
The XAU/USD pair hovered near USD 4,130, continuing to experience downward pressure as it remained beneath the 50-day simple moving average (SMA) of USD 4,330.10, the 100-day SMA of USD 4,271.35, and the 200-day SMA of USD 4,531.81, preserving a bearish near-term outlook. The Relative Strength Index registered at 38, indicating a weak zone and signaling that sellers continue to dominate.
“Fundamentals remain supportive of gold in the long term. The next big catalyst is likely to stem from geopolitical risk in the Middle East,” said Kyle Rodda, senior financial market analyst at Capital.com.
“Alternatively, a significant change in US rate expectations could provide an impetus for the next breakout, so every piece of price data will be important,” he further added.
For upward movements, immediate resistance is positioned close to USD 4,271.35, with the 50-day SMA at USD 4,330.10 acting next, and the 200-day SMA at USD 4,531.81 forming a more formidable barrier. Conversely, downside support coincides with the rising trendline zone near USD 4,000, a region where buyers might step in to curb further losses if the downward trend persists.
