On October 12, gold traded higher on the MCX following remarks from US President Donald Trump, who stated he would “look at” joining Saudi Arabia in countering Iran-backed Houthis after fatal airport strikes. Despite this, December gold futures dropped 0.49% to Rs. 1,50,750 per 10 grams, and December silver futures dropped 0.14% to Rs. 2,25,449.
Meanwhile, Brent crude futures decreased by 1.38% to USD 103.3 per barrel, and US West Texas Intermediate (WTI) fell 1.74% to USD 90.25 per barrel.
Domestic Gold Prices
24K gold decreased by Rs. 44 to settle at Rs. 1,50,980 per 10 grams, and 22K gold declined by Rs. 40 to Rs. 1,38,400. Across major cities, prices stood at Rs. 1,50,980 in Mumbai and Kolkata, Rs. 1,51,130 in Delhi, and Rs. 1,50,980 in Chennai.
US Gold Prices
American gold prices advanced on Monday, buoyed by a weaker dollar and reduced oil prices as market participants awaited pivotal US inflation data to gauge the Federal Reserve’s upcoming policy decisions.
Spot gold edged up 0.13% to USD 4,221.776, while US gold futures increased by 0.09% to USD 4,198.18 per ounce. In other precious metals, spot silver gained 0.40% to USD 61.06, platinum climbed 0.64% to USD 1,700.26, and palladium rose 0.60% to USD 1,159.05.
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Key Levels to Watch
The XAU/USD pair is changing hands at USD 4,198, maintaining a near-term bearish outlook as spot prices remain beneath crucial moving averages. Quotations are sitting under the 100-day simple moving average (SMA) near USD 4,256, the 50-day SMA close to USD 4,338, and the long-term 200-day SMA at USD 4,529. The Relative Strength Index hovers near 48, resting just under the neutral line.
Immediate resistance on the upside is situated near USD 4,256, with subsequent hurdles at USD 4,338 and USD 4,529. Conversely, downside support is positioned near the previously rising trend-line at USD 4,001; a persistent breach below this threshold could trigger a more severe correction.
“Softer oil prices on the back of Trump’s reported energy ceasefire between Russia and Ukraine, combined with a more subdued dollar, have given gold a window of opportunity to the upside to start the week,” said Tim Waterer, Chief Market Analyst at KCM Trade.
“As oil eases, it takes some of the immediate inflation and interest rate anxiety out of the market, which helps gold from a yield perspective,” he further added.
