On October 7, gold prices experienced a downturn on the MCX. This movement occurred against a backdrop of persistent geopolitical tension between the US and Iran, driven by ongoing risks to oil shipments through the Strait of Hormuz, alongside market anticipation surrounding the upcoming RBI policy outcome.
December gold futures dropped 0.43% to settle at Rs. 1,49,480 per 10 grams, while December silver futures decreased by 0.58% to Rs. 2,25,930. In the energy markets, Brent crude futures rose 1.02% to USD 101.6 per barrel, whereas US West Texas Intermediate (WTI) fell 0.88% to USD 90.23 per barrel.
Domestic Gold Prices
24K gold decreased by Rs. 65, bringing it to Rs. 1,49,570 per 10 grams, and 22K gold dropped by Rs. 60 to Rs. 1,37,100. Across different cities, prices in Mumbai and Kolkata matched at Rs. 1,49,570, while Delhi recorded Rs. 1,49,700 and Chennai stood at Rs. 1,49,570.
US Gold Prices
American gold prices declined on Wednesday as market participants awaited the release of the US Federal Reserve’s September meeting minutes to gauge whether officials still lean toward further interest rate hikes.
Spot gold decreased by 0.53% to USD 4,141.87 per ounce, and US gold futures dropped 0.46% to USD 4,167.26. Additionally, spot silver declined 0.87% to USD 60.82, platinum dropped 0.67% to USD 1,699.33, and palladium decreased by 0.53% to USD 1,163.40.
Also Read: India Gold Imports Could Hit USD 90B as Kotak Warns on CAD Risk
Key Levels to Watch
XAU/USD is trading at USD 4,141, displaying a bearish near-term bias as it stays beneath the 50-day, 100-day, and 200-day simple moving averages (SMAs) of USD 4,332, USD 4,267, and USD 4,530, respectively. This indicates that the larger upward trend is currently undergoing a correction. Meanwhile, the Relative Strength Index hovers near 38, keeping momentum slightly negative without entering oversold conditions.
Looking upward, immediate resistance is found at the 100-day SMA of USD 4,267, followed by the 50-day SMA at USD 4,332; breaking decisively above these levels is necessary to alleviate the prevailing bearish sentiment. On the downward side, the next support level coincides with the rising trend line near USD 4,000, and a daily close below this threshold would likely prolong the corrective movement.
“The yellow metal is likely to remain relatively stable with a mild downside bias,” noted Frank Walbaum, a market analyst at Naga.com.
“Minutes will clarify the Fed’s monetary policy and the degree of support among policymakers for further rate increases and could reshape upcoming hike odds. Subsequent moves in long-term Treasury yields, the dollar, or oil prices triggered by any Middle East developments would then amplify the directional impact (on gold),” he further added.
