Gold traded lower on MCX on September 21 amid rising tensions in the Middle East and persistent inflation concerns, which heightened expectations of interest rate hikes. October gold futures fell 0.42% to Rs. 1,53,734 per 10 grams, while September silver futures declined 0.33% to Rs. 2,40,812.
Meanwhile, Brent crude futures fell 2.11% to USD 101.6 per barrel. US West Texas Intermediate (WTI) edged lower by 2.17% to USD 98.12 per barrel.
24K gold fell by Rs. 16 to Rs. 1,56,680 per 10 grams, while 22K gold also declined by Rs. 15 to Rs. 1,42,700. By city, Mumbai and Kolkata mirrored prices at Rs. 1,56,680, while Delhi was at Rs. 1,55,830 and Chennai at Rs. 1,55,680.
US gold prices amid over 2% decline in oil prices as market participants kept their focus on developments in the Middle East.
Spot gold fell 0.2% to USD 4,368.33 per ounce. US gold futures for December delivery dropped by 0.4%, standing at USD 4,406.70.
Spot silver rose by 0.1% to USD 66.31 per ounce while platinum gained 0.1% to USD 1,801.20 and palladium added 0.1% at USD 1,303.70 per ounce.
Also Read: India Gold Imports Could Hit USD 90B as Kotak Warns on CAD Risk
The daily chart for gold shows strong consolidation between the 50-day and 200-day SMAs in the USD 4,300 to USD 4,530 zone. A break of these SMAs will likely define the next move for gold. A break below USD 4,300 will push the price towards the USD 4,150 area.
On the other hand, a break above USD 4,530 will open the way for a strong rally towards the USD 4,800 to USD 5,000 region. The RSI remains at the midline, which shows uncertainty in the short term. However, the price structure remains bullish as long as the price remains above the USD 4,000 level.
For Silver, the immediate support is at USD 63. A break below USD 63 will likely push prices towards the USD 60 area. However, a break below USD 60 will likely indicate further downside towards the USD 50 to USD 55 region.