Gold traded slightly higher on MCX on September 25 after coming under pressure in recent sessions as a stronger US dollar and higher Treasury yields weighed on precious metals. October gold futures rose 0.14% to Rs. 1,50,914 per 10 grams, while September silver futures declined 0.22% to Rs. 2,32,977.
Meanwhile, Brent crude futures fell 0.90% to USD 105.6 per barrel. US West Texas Intermediate (WTI) edged lower by 1.62% to USD 93.08 per barrel.
24K gold rose by Rs. 16 to Rs. 1,52,840 per 10 grams, while 22K also advanced by Rs. 80 to Rs. 1,40,100. By city, Mumbai and Kolkata mirrored prices at Rs. 1,52,840, while Delhi was at Rs. 1,52,990 and Chennai at Rs. 1,52,840.
US gold prices edged up on Friday but are on a path to a weekly loss, pressured by a stronger dollar and growing expectations that the Federal Reserve will keep interest rates elevated.
Spot gold rose 0.2% to USD 4,288.36 per ounce. US gold futures edged 0.6% higher to USD 4,323.10.
Spot silver slipped 0.1% to USD 63.81 per ounce, platinum climbed 0.5% to USD 1,756.90 and palladium fell 1.3% to USD 1,257.56.
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"Focus will definitely continue to be on the interest rate situation. When we start to see markets pricing in a much more hawkish Fed, it strengthens the dollar and is negative for gold," said Kelvin Wong, senior market analyst at OANDA.
"Returning inflation to 2% is a top priority, and I will support the policy path that gets us there while carefully weighing risks to the labor market along the way," Philadelphia Fed President Anna Paulson said. New York Fed President John Williams also suggested tighter monetary policy is coming.
Gold keeps a bearish near-term bias below the 50% retracement and the 200-period Simple Moving Average (SMA) on the 4-hour chart. The latter aligns with the 38.2% Fibonacci retracement at USD 4,410, reinforcing the resistance on the upside.
Meanwhile, the Moving Average Convergence Divergence (MACD) remains negative and below its signal line, hinting at continued downside pressure.
A break below USD 4,230 is needed to support the case for deeper losses to USD 4,105 before the previous cycle low area near USD 3,945. On the upside, immediate resistance is aligned at USD 4,320, ahead of a denser barrier where the 38.2% level at USD 4,408 converges with the 200-period SMA at USD 4,417.