Gold traded lower on MCX on November 2 amid a higher-for-longer rate view from Federal Reserve firms amid persistent inflation, following the recent decision to hold interest rates steady.
Meanwhile, December gold futures rose 0.17% to Rs. 1,38,726 per 10 grams, and December silver futures advanced 0.93% to Rs. 1,80,805. Brent crude futures fell 3.32% to USD 109.2 per barrel. US West Texas Intermediate (WTI) advanced 3.40% to USD 100.6 per barrel.
24K gold rose by Rs. 40 to Rs. 1,39,370 per 10 grams, while 22K gold also advanced by Rs. 45 to Rs. 1,27,750. Citywise, Mumbai and Kolkata mirrored prices at Rs. 1,39,370, while Delhi was at Rs. 1,39,520 and Chennai at Rs. 1,39,370.
US gold prices rebounded on Monday as investors returned following the metal’s steepest monthly decline since 2008, while oil prices declined over 3%, easing some inflation concerns.
Spot gold rose 0.69% at USD 3,902.27 per ounce. US gold futures for December delivery gained 0.30% to USD 3,910.77. Spot silver advanced 1.74% to USD 50.001 per ounce, platinum dropped 3.59% to USD 1,434,.65, and palladium fell 2.55% to USD 980.35.
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ANZ analysts said elevated yields were becoming increasingly difficult for bullion to overcome, while resilient US consumption, at an annualised 3.8%, pointed to continued economic strength.
ANZ said gold-backed exchange-traded funds (ETFs) attracted over 50 tonnes in September even as US Treasury yields crossed 5%, indicating the inverse relationship between yields and gold prices has weakened.
XAU/USD trades at USD 3,902 with a bearish near-term bias as spot holds below its 20-day exponential moving average (EMA) around USD 4,073. The Relative Strength Index (14) at 32 hovers near oversold territory, suggesting selling could soon start to lose momentum.
On the upside, immediate resistance stands near USD 3,942, followed by the 20-day EMA near USD 4,073, and a sustained recovery above this level would be needed to ease the current downside bias. Gold would be exposed to USD 3,800 if it fails to hold the immediate support at USD 3,870.