Gold traded lower on MCX on October 7 amid continued geopolitical uncertainty between the US and Iran, as oil exports through the Strait of Hormuz continue to remain vulnerable. Investors are also awaiting a decision on RBI policy.
Meanwhile, December gold futures fell 0.43% to Rs. 1,49,480 per 10 grams, and December silver futures declined 0.58% to Rs. 2,25,930. Brent crude futures edged higher by 1.02% to USD 101.6 per barrel. US West Texas Intermediate (WTI) dipped 0.88% to USD 90.23 per barrel.
24K gold fell by Rs. 65 to Rs. 1,49,570 per 10 grams, while 22K also declined by Rs. 60 to Rs. 1,37,100. Citywise, Mumbai and Kolkata mirrored prices at Rs. 1,49,570, while Delhi was at Rs. 1,49,700 and Chennai at Rs. 1,49,570.
US gold prices slipped on Wednesday as investors looked to minutes from the US Federal Reserve's September meeting for indications on whether policymakers remain inclined to raise rates further.
Spot gold eased 0.53% to USD 4,141.87 per ounce. US gold futures edged 0.46% lower to USD 4,167.26. Spot silver fell 0.87% to USD 60.82, platinum fell 0.67% to USD 1,699.33, while palladium lost 0.53% to USD 1,163.40.
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XAU/USD trades at USD 4,141 with a bearish near-term bias as it remains below the 50-day, 100-day and 200-day simple moving averages (SMAs) at USD 4,332, USD 4,267 and USD 4,530, respectively. This suggests the broader uptrend is under corrective pressure, while the Relative Strength Index around 38 keeps momentum slightly negative but remains above the oversold territory.
On the upside, immediate resistance can be seen at the 100-day SMA at USD 4,267, followed by the 50-day SMA at USD 4,332, where a sustained break would be needed to ease the current bearish tone. On the downside, the next support aligns with the rising trend line around USD 4,000; a daily close below this level would likely extend the corrective phase.
“The yellow metal is likely to remain relatively stable with a mild downside bias,” noted Frank Walbaum, a market analyst at Naga.com.
“Minutes will clarify the Fed's monetary policy and the degree of support among policymakers for further rate increases and could reshape upcoming hike odds. Subsequent moves in long-term Treasury yields, the dollar, or oil prices triggered by any Middle East developments would then amplify the directional impact (on gold),” he further added.