Gold traded higher on MCX on October 8 as the US dollar eased and elevated Treasury yields weighed on markets. Meanwhile, December gold futures gained 0.43% to Rs. 1,49,750 per 10 grams, and December silver futures advanced 0.29% to Rs. 2,24,200.
Brent crude futures edged higher by 2.17% to USD 102.4 per barrel. US West Texas Intermediate (WTI) advanced 1.82% to USD 89.89 per barrel.
24K gold traded at Rs. 1,49,197 per 10 grams, while 22K gold stood at Rs. 1,36,664. Citywise, Mumbai gold prices were at Rs. 1,49,346, while Delhi was at Rs. 1,49,197 and Chennai at Rs. 1,50,539.
US gold prices edged higher on Thursday as the dollar eased from an 18-month peak, helping bullion recover from a two-month low.
Spot gold was up 0.60% at USD 4,135.60 per ounce. US gold futures for December delivery gained 0.46% to USD 4,159.75. Spot silver rose 0.45% to USD 60.07, platinum gained 2% to USD 1,666.70, while palladium edged up by 2.17% to USD 1,144.76.
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“The short-term investment case for gold remains challenged. For now, it remains a seller's market, and we would need to see a break above USD 4,275 to become more constructive on the near-term upside,” said Chris Weston, Head of Research, Pepperstone.
“If markets begin treating rising long-end yields as a reflection of sovereign credit and fiscal risk rather than stronger economic fundamentals, gold could start to diverge positively from bond yields and the debasement trade could return with greater force,” he further added
XAU/USD trades at USD 4,135 with a bearish near-term bias as gold holds below the 50-day simple moving average (SMA) at USD 4,332, the 100-day SMA at USD 4,263 and the 200-day SMA near USD 4,530. The Relative Strength Index around 40 tilts bearish but stays above oversold territory, suggesting that sellers retain control without showing exhaustion.
On the upside, immediate resistance appears at near USD 4,263, followed by the 50-day SMA at USD 4,332. On the downside, a strong structural floor is seen near USD 4,000, which is the first notable support level, and a break below this level would open the way for a deeper correction.