Gold traded higher on MCX on September 10 amid caution ahead of US inflation data and the US Federal Reserve's policy decision. October gold futures fell 0.12% to Rs. 1,53,950 per 10 grams, while September silver futures declined 0.34% to Rs. 2,43,375.
Meanwhile, Brent crude futures fell 0.16% to USD 101 per barrel. US West Texas Intermediate (WTI) edged higher by 0.06% to USD 96.11 per barrel.
The CME FedWatch Tool indicates that markets are currently pricing in a 39.8% probability that the Fed will keep rates unchanged and a 60.2% chance of a rate hike in September.
24K gold rose by Rs. 120 to Rs. 1,55,510 per 10 grams, while 22K gold also advanced by Rs. 110 to Rs. 1,42,550. By city, Mumbai and Kolkata mirrored prices at Rs. 1,55,510, while Delhi was at Rs. 1,55,660 and Chennai at Rs. 1,55,510.
US gold prices traded higher on Thursday, supported by a softer dollar, while market participants awaited key US inflation data that could shape the Federal Reserve's interest-rate path.
Spot gold was up 0.3% at USD 4,412.84 per ounce. US gold futures for December delivery fell 0.1% to USD 4,457.10. Spot silver rose 0.2% to USD 67.42 per ounce, platinum fell 0.6% to USD 1,885.02 and palladium gained 0.2% to USD 1,355.50.
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"For now, the geopolitical developments in the Persian Gulf are of secondary importance to gold. Gold instead is teeing off on a weaker dollar, which notably is not moving up despite the fact that US rates are going higher," Marex analyst Edward Meir said.
Gold is supported "as US fiscal pressures continue to undermine confidence in the long-term value of government debt and the currency used to finance it," Daniel Hynes, senior commodities strategist at ANZ, said in a note.
On MCX, gold has support at Rs. 1,52,500 and Rs. 1,51,650 and resistance at Rs. 1,54,400 and Rs. 1,55,500, while silver has support at Rs. 2,41,400 and Rs. 2,39,100 and resistance at Rs. 2,45,800 and Rs. 2,48,000.