Gold traded lower on MCX on August 19 as elevated crude oil prices, amid stalled US-Iran talks, fueled US Fed interest rate hike bets. August gold futures fell 0.2% to Rs. 1,53,953, and September silver futures declined 1.41% to Rs. 2,29,143.
Meanwhile, Brent crude futures rose 0.71% to $91.67 per barrel. US West Texas Intermediate (WTI) edged higher by 0.80% to $85.62 per barrel.
The CME FedWatch Tool indicates markets are currently pricing in a 65% probability that the Fed will keep rates unchanged and a 35% chance of a rate hike in September.
24K gold fell by Rs. 90 to Rs. 1,54,970 per 10 grams, while 22K gold also declined by Rs. 85 to Rs. 1,42,050. By city, Mumbai and Kolkata mirrored prices at Rs. 1,54,970, while Delhi was at Rs. 1,55,120, and Chennai at Rs. 1,54,970.
US gold prices rose on Wednesday as Treasury yields eased, with investors awaiting minutes of the US central bank's July meeting for fresh clues on the monetary policy outlook.
Spot gold climbed 0.5% to $4,356.55 per ounce. US gold futures slipped 0.2% to $4,410.20.
Spot silver slid 0.4% to $63.03 per ounce, platinum gained 0.5% to $1,720.10 and palladium held steady at $1,289.45.
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“Reduced expectations for Federal Reserve interest rate hikes and rising fiscal budget concerns are positive factors for gold,” said Kelvin Wong, a senior market analyst at OANDA.
"A sustained break above $4,390 could open the door (for gold) towards $4,505, while a break below $4,300 could expose $4,200 and $4,150," said Lukman Otunuga, head of market research at FXTM.
On MCX, gold has support at Rs. 1,53,100 and Rs. 1,52,200, and resistance at Rs. 1,55,000 and Rs.1,56,100, while silver has support at Rs. 2,30,000 and Rs. 2,26,600, and resistance at Rs. 2,23,500 and Rs. 2,37,700.