Gold traded lower on MCX on September 9 amid fresh attacks on ships in the Middle East, which added to inflationary risks and strengthened expectations of a US interest-rate hike. October gold futures fell 0.14% to Rs. 1,52,370 per 10 grams, and September silver futures declined 0.13% to Rs. 2,39,113.
Meanwhile, Brent crude futures rose 1.46% to USD 99.35 per barrel. US West Texas Intermediate (WTI) edged higher by 1.30% to USD 94.24 per barrel.
The CME FedWatch Tool indicates markets are currently pricing in a 39.5% probability that the Fed will keep rates unchanged and a 60.5% chance of a rate hike in September.
24K gold fell by Rs. 104 to Rs. 1,54,310 per 10 grams, while 22K gold also declined by Rs. 95 to Rs. 1,41,450. By city, Mumbai and Kolkata mirrored prices at Rs. 1,54,310, while Delhi was at Rs. 1,54,460 and Chennai at Rs. 1,54,310.
US gold prices inched higher amid rising oil prices fueled inflation concerns and boosted expectations for a rate hike by the Federal Reserve.
Spot gold rose 0.56% to USD 4,380.01 per ounce. US gold futures for December delivery dropped 0.38% to USD 4,422.31.
Spot silver gained 0.73% at USD 66.23 per ounce, platinum rose 0.78% at USD 1,833.60, and palladium firmed 0.28% to USD 1,349.50.
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“Gold is range-bound because it is capped by a higher probability of raising interest rates, which continues to hinder momentum in the market," said Daniel Pavilonis, senior market strategist at Stone X.
“A softer reading will be a relief for gold traders” as it would support the case for holding rates steady, said Ahmad Assiri, a market strategist at Pepperstone Group Ltd. “The greater risk lies in an upside inflation surprise, which would likely strengthen the case for a hike, creating what could be massive pressure on the precious metal,” he added.
Internationally, gold is likely to find support at USD 4,400-USD 4,365 per troy ounce, while resistance is placed at USD 4,474-USD 4,510. For silver, support stands at USD 65.80-USD 64.70, with resistance at USD 68-USD 69.10 per troy.
On the MCX, gold has support at Rs. 1,51,500-Rs. 1,50,150 and resistance at Rs. 1,53,300-Rs. 1,54,100. Silver is expected to find support at Rs. 2,37,700-Rs. 2,35,000, while resistance is seen at Rs. 2,41,400-Rs. 2,44,000.