Gold traded slightly higher on MCX on October 16 amid heightened tensions between the US and Iran. Meanwhile, December gold futures gained 0.48% to Rs. 1,48,196 per 10 grams, and December silver futures advanced 1.02% to Rs. 2,12,799. Brent crude futures fell 0.57% to USD 105.3 per barrel. US West Texas Intermediate (WTI) declined 0.67% to USD 97.31 per barrel.
24K gold fell by Re. 1 to Rs. 1,47,430 per 10 grams, while 22K also declined by Re. 1 to Rs. 1,35,140. Citywise, Mumbai and Kolkata mirrored prices at Rs. 1,47,430, while Delhi was at Rs. 1,47,580 and Chennai at Rs. 1,47,430.
US gold prices edged higher on Friday, October 16, recovering some ground after a sharp selloff earlier in the week. Spot gold was up 0.22% to USD 4,179.68 per ounce. US gold futures for December delivery rose 0.73% to USD 4,200.70. Spot silver gained 0.68% to USD 59.83, platinum added 0.70% to USD 1,642.04, and palladium gained 0.96% to USD 1,143.90.
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San Francisco Fed President Mary Daly indicated that further rate increases might be necessary but saw no need to act in October, while Michelle Bowman supported waiting and Alberto Musalem emphasized the need to restore inflation to the 2% target.
Markets priced in a 29% probability of an October rate hike, up from 22% before the inflation data. The XAU/USD pair has been struggling to find ground above the 100-period Simple Moving Average (SMA) and remains below the 61.8% Fibonacci retracement level of the July-August upswing.
Gold is witnessing short covering, with open interest declining by 2.86%. The yellow metal has support at Rs. 1,47,040, below which prices could test Rs. 1,46,600. Resistance is at Rs. 1,47,990, and a sustained move above this level could push prices toward Rs. 1,48,500.