Gold traded lower on MCX on September 2 amid weak global trends and renewed tensions between the US and Iran, adding to inflation concerns. October gold futures fell 1.06% to Rs. 1,50,125 per 10 grams, and September silver futures declined 1.15% to Rs. 2,26,898.
Meanwhile, Brent crude futures rose 0.85% to USD 95.45 per barrel. US West Texas Intermediate (WTI) edged higher by 0.53% to USD 90.70 per barrel.
The CME FedWatch Tool indicates markets are currently pricing in a 29.8% probability that the Fed will keep rates unchanged and a 70.2% chance of a rate hike in September.
24K gold fell by Rs. 207 to Rs. 1,52,020 per 10 grams, while 22K gold also declined by Rs. 190 to Rs. 1,39,350. By city, Mumbai and Kolkata mirrored prices at Rs. 1,52,020, while Delhi was at Rs. 1,52,170 and Chennai at Rs. 1,52,020.
US gold prices fell on Wednesday to its lowest in more than three weeks, as the escalating Middle East tensions lifted oil prices and stoked inflation and rate-hike fears.
Spot gold was down 0.6% at USD 4,304.01 per ounce. US gold futures for December delivery fell 1% to USD 4,350.80.
Spot silver lost 1% to USD 63.60 per ounce, platinum edged 1% lower to USD 1,722.23 and palladium fell 1.4% to USD 1,292.21.
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"A rebound in oil prices after renewed US-Iran tensions added to inflation concerns. A pricier crude could continue to tighten monetary policy expectations and drive yields higher, limiting any rebound potential for gold," said Bas Kooijman, CEO and asset manager of DHF Capital S.A.
"Softer figures could ease the pressure on gold, while stronger data or more hawkish Fed comments may extend the decline," Kooijman said.
On MCX, gold has support at Rs. 1,50,500 and Rs. 1,49,100, and resistance at Rs. 1,53,000 and Rs. 1,54,400, while silver has support at Rs. 2,32,000 and Rs. 2,30,000 and resistance at Rs. 2,38,000 and Rs. 2,41,000.