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Gold traded lower on MCX on September 28 amid reports of fresh tensions between the US and Iran, despite the two sides having held their first known indirect talks last week. October gold futures fell 1.78% to Rs. 1,48,176 per 10 grams, while September silver futures declined 2.37% to Rs. 2,29,141.
Meanwhile, Brent crude futures rose 2.53% to USD 107 per barrel. US West Texas Intermediate (WTI) edged higher by 1.74% to USD 94.02 per barrel.
24K gold fell by Rs. 251 to Rs. 1,50,170 per 10 grams, while 22K also declined by Rs. 230 to Rs. 1,37,650. By city, Mumbai and Kolkata mirrored prices at Rs. 1,50,170, while Delhi was at Rs. 1,50,320 and Chennai at Rs. 1,50,170.
US gold prices fell more than 2% on Monday as rising oil prices heightened inflation concerns and reinforced expectations of further Federal Reserve interest-rate hikes. Spot gold fell 2.1% to USD 4,198.10 per ounce. US gold futures fell 2.1% to USD 4,231.
Spot silver fell 3.4% to USD 62.08 per ounce, platinum was down 2.7% at USD 1,730.78 and palladium lost 2.8% to USD 1,231.46.
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"The high bond yields and high oil price tandem continues to act as a thorn in gold’s side. Oil prices have risen on mixed signals about oil flows, which is keeping inflation front and centre for investors," said Tim Waterer, chief market analyst at KCM Trade.
"Stronger-than-expected inflation or employment numbers could keep upward pressure on bond yields and weigh further on gold," Waterer said.
N S Ramaswamy, Head of Commodity & CRM at Ventura, expects gold to remain range-bound to mildly bearish in the near term if the dollar and bond yields remain firm. On COMEX, he sees support at USD 4,200-USD 4,250 and resistance at USD 4,360-USD 4,450. On the MCX, support is placed at Rs. 1,49,000-Rs. 1,50,000, while resistance is seen at Rs. 1,53,000-Rs. 1,54,000.
