On September 28, gold experienced a lower on MCX trading session against a backdrop of renewed friction between the US and Iran, even though the nations engaged in their initial known indirect discussions just last week. October gold futures dropped 1.78% to settle at Rs. 1,48,176 per 10 grams, whereas September silver futures retreated 2.37% to reach Rs. 2,29,141.
Concurrently, Brent crude futures advanced 2.53%, hitting USD 107 per barrel, and US West Texas Intermediate (WTI) climbed 1.74% to USD 94.02 per barrel.
Domestic Gold Prices
The price of 24K gold dropped by Rs. 251 to finish at Rs. 1,50,170 per 10 grams, and 22K gold decreased by Rs. 230 to Rs. 1,37,650. Across different urban centers, Mumbai and Kolkata recorded identical rates at Rs. 1,50,170, while Delhi stood at Rs. 1,50,320 and Chennai at Rs. 1,50,170.
US Gold Prices
On Monday, US gold prices dropped by over 2% as surging crude markets escalated worries about inflation, strengthening predictions that the Federal Reserve will continue raising interest rates. Spot gold retreated 2.1% to settle at USD 4,198.10 per ounce, while US gold futures also dropped 2.1% to USD 4,231.
Meanwhile, spot silver declined 3.4% to USD 62.08 per ounce, platinum dropped 2.7% to land at USD 1,730.78, and palladium fell 2.8% to end at USD 1,231.46.
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Key Levels to Watch
“The high bond yields and high oil price tandem continues to act as a thorn in gold’s side. Oil prices have risen on mixed signals about oil flows, which is keeping inflation front and centre for investors,” said Tim Waterer, chief market analyst at KCM Trade.
“Stronger-than-expected inflation or employment numbers could keep upward pressure on bond yields and weigh further on gold,” Waterer said.
N S Ramaswamy, Head of Commodity & CRM at Ventura, projects that gold will likely trade within a range or turn mildly bearish in the near future if the US dollar and bond yields maintain their strength. On COMEX, he identifies support levels at USD 4,200-USD 4,250 and resistance at USD 4,360-USD 4,450. For the MCX, support is positioned at Rs. 1,49,000-Rs. 1,50,000, with resistance expected at Rs. 1,53,000-Rs. 1,54,000.
