Gold traded flat on MCX on September 15 amid a rise in the US dollar and bond yields ahead of the monetary policy decisions of the US Federal Reserve. October gold futures fell 0.02% to Rs. 1,51,205 per 10 grams, while September silver futures declined 0.33% to Rs. 2,31,930.
Meanwhile, Brent crude futures rose 1.60% to USD 107.4 per barrel. US West Texas Intermediate (WTI) edged higher by 1.80% to USD 103.2 per barrel.
The CME FedWatch Tool indicates that markets are currently pricing in a 6.4% probability that the Fed will keep rates unchanged and a 93.6% chance of a rate hike in September.
24K gold fell by Rs. 92 to Rs. 1,53,170 per 10 grams, while 22K gold also declined by Rs. 85 to Rs. 1,40,400. By city, Mumbai and Kolkata mirrored prices at Rs. 1,53,170, while Delhi was at Rs. 1,53,320 and Chennai at Rs. 1,53,170.
US gold prices rose on Friday following robust US inflation data and rising oil prices, increasing bets for a Federal Reserve rate hike next week.
Spot gold was up 0.17% at USD 4,305.93 per ounce. US gold futures for December delivery were down 0.16% at USD 4,345.07. Spot silver rose 0.19% to USD 63.35. Platinum rose 0.55% to USD 1,775.95, while palladium advanced 0.36% to USD 1,291.01.
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The Producer Price Index (PPI) data "sort of tells us that there has been a bit of a pickup in underlying inflation in the US economy, and a part of that is due to rising energy costs," said Kyle Rodda, senior financial market analyst at Capital.com.
Bonds have to reflect more persistent and higher inflation from steeper oil prices, which sees gold prices drop, Rodda added.
On MCX, gold has support at Rs. 1,50,150 and Rs. 1,49,400 and resistance is at Rs. 1,52,400 and Rs. 1,53,650, while silver has support at Rs. 2,30,300 and Rs. 2,28,000 and resistance is at Rs. 2,36,000 and Rs. 2,38,800.