Gold traded lower on MCX on September 29 as the ongoing standoff between the US and Iran surrounding the Strait of Hormuz kept energy expenses high, sustaining pressure on the Federal Reserve to hike interest rates. October gold futures dropped 0.27% to reach Rs. 1,48,500 per 10 grams, and September silver futures decreased by 0.46% to Rs. 2,46,130.
Concurrently, Brent crude futures advanced 1.80% to USD 107.2 per barrel, whereas US West Texas Intermediate (WTI) climbed 1.75% to USD 94.22 per barrel.
Domestic Gold Prices
24K gold dropped by Rs. 137 to settle at Rs. 1,48,800 per 10 grams, and 22K fell by Rs. 125 to Rs. 1,36,400. Looking at regional figures, Mumbai and Kolkata recorded identical rates at Rs. 1,48,800, compared to Rs. 1,48,950 in Delhi and Rs. 1,49,080 in Chennai.
US Gold Prices
US gold prices ticked upward on Tuesday, though they remained near a seven-week-plus low amid worries that the Federal Reserve will maintain elevated interest rates for an extended period.
Spot gold increased 0.4% to USD 4,130.58 per ounce, while US gold futures dipped 0.2% to USD 4,162.20. Meanwhile, spot silver dropped 0.9% to USD 60.42, platinum declined 1.3% to USD 1,697.71, and palladium fell 0.8% to USD 1,205.27.
Also Read: India Gold Imports Could Hit USD 90B as Kotak Warns on CAD Risk
Key Levels to Watch
Geopolitical updates will “remain crucial for gold, as continued tensions could keep energy prices and yields elevated, while meaningful progress towards de-escalation could ease pressure,” noted Christopher Tahir, senior market strategist at Exness.
“Persistent price pressures combined with resilient activity would reinforce expectations that central banks need to remain restrictive, keeping yields elevated and leaving gold vulnerable to further losses,” Tahir stated.
Observing the daily chart, XAU/USD sits at USD 4,130, staying underneath the 20-day, 50-day, and 100-day simple moving averages (SMAs) which are grouped tightly between approximately USD 4,290 and USD 4,330, maintaining a bearish near-term outlook.
The 14-day Relative Strength Index sits near 36, indicating sluggish momentum without fully crossing into oversold levels, which implies that sellers maintain the advantage.
Regarding downside targets, primary support rests at the upward trend-line base around USD 3,990, where buyers might step in if the decline continues. For upward movement, initial resistance begins at the 100-day SMA of USD 4,292, followed closely by the 50-day SMA at USD 4,321 and the 20-day SMA at USD 4,325, creating a heavy supply barrier that gold must break through to reduce downward pressure.
