Gold traded lower on MCX on October 29 after the US Federal Reserve held benchmark interest rates steady, as broadly expected. Meanwhile, December gold futures fell 0.06% to Rs. 1,43,620 per 10 grams, and December silver futures declined 0.68% to Rs. 1,93,000. Brent crude futures fell 1.10% to USD 114 per barrel. US West Texas Intermediate (WTI) declined 1.29% to USD 101.5 per barrel.
24K gold traded at Rs. 1,43,780 per 10 grams, while 22K gold stood at Rs. 1,31,798. Citywise, Mumbai and Kolkata mirrored prices at Rs. 1,43,780, while Delhi was at Rs. 1,43,530 and Chennai at Rs. 1,44,310.
US gold prices fell on Thursday as investors assessed signals from the Federal Reserve and Chair Kevin Warsh after policymakers left interest rates unchanged and await key US inflation data. Spot gold slid 0.7% to USD 4,037.98 per ounce, while US gold futures for December delivery steadied at USD 4,049.80. Spot silver fell 1.5% to USD 53.15 per ounce, platinum dropped 1.5% to USD 1,515.70, and palladium slid 0.6% to USD 1,004.25.
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“Today's fall is purely because of persistent Middle East uncertainty and market positioning ahead of today's inflation data,” said Ajay Kedia, Director at Mumbai-based Kedia Commodities.
CME's FedWatch Tool also suggested that traders are pricing in about a 78% chance of a rate hike in December, compared with 84% before the announcement.
XAU/USD trades around USD 4,038, with a bearish near-term bias as spot remains below the 20-day Exponential Moving Average (EMA) near USD 4,116. The Relative Strength Index (14) around 39 indicates subdued momentum rather than oversold conditions.
On the topside, immediate resistance is seen at the 20-day EMA around USD 4,116, and a daily close above this hurdle would be needed to ease the current downside pressure. The June low at USD 3,941.76 is the key support level.