Gold traded lower on MCX on October 6 amid ongoing geopolitical uncertainty between the US and Iran. December gold futures fell 0.14% to Rs. 1,49,100 per 10 grams, while December silver futures declined 0.21% to Rs. 2,25,611.
Meanwhile, Brent crude futures gained 0.25% to USD 100.6 per barrel. US West Texas Intermediate (WTI) edged higher by 0.23% to USD 89.64 per barrel.
24K gold fell by Rs. 16 to Rs. 1,49,020 per 10 grams, while 22K also declined by Rs. 13 to Rs. 1,36,600. By city, Mumbai and Kolkata mirrored prices at Rs. 1,49,020, while Delhi was at Rs. 1,49,170 and Chennai at Rs. 1,49,020.
US gold prices eased on Tuesday, pressured by a firmer US dollar and rising Treasury yields. However, losses were limited by easing expectations of a Federal Reserve interest rate hike.
Spot gold slipped 0.3% to USD 4,128.83 per ounce. US gold futures changed slightly to USD 4,155.90. Spot silver fell 0.6% to USD 60.69, platinum lost 0.5% to USD 1,712.20 and palladium eased 0.5% to USD 1,166.86.
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XAU/USD trades near USD 4,130, remaining under downside pressure as it holds below the 50-day simple moving average (SMA) at USD 4,330.10, the 100-day SMA at USD 4,271.35 and the 200-day SMA at USD 4,531.81, keeping the near-term bias bearish. The Relative Strength Index at 38 lies in weak territory, suggesting sellers are still in control.
“Fundamentals remain supportive of gold in the long term. The next big catalyst is likely to stem from geopolitical risk in the Middle East,” said Kyle Rodda, senior financial market analyst at Capital.com.
“Alternatively, a significant change in US rate expectations could provide an impetus for the next breakout, so every piece of price data will be important,” he further added.
On the upside, immediate resistance is seen near USD 4,271.35, followed by the 50-day SMA at USD 4,330.10, while the 200-day SMA at USD 4,531.81 marks a more distant barrier. On the downside, the support aligns with the rising trendline area around USD 4,000, where buyers may attempt to slow the decline if the current weakness extends.