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Gold traded lower on MCX on October 5, tracking movements in the US dollar and geopolitical developments. December gold futures fell 0.76% to Rs. 1,49,251 per 10 grams, while December silver futures advanced 0.36% to Rs. 2,26,679.
Meanwhile, Brent crude futures dropped 0.86% to USD 101.4 per barrel. US West Texas Intermediate (WTI) edged down by 1.31% to USD 89.92 per barrel.
24K gold fell by Rs. 577 to Rs. 1,47,499 per 10 grams, while 22K also declined by Rs. 529 to Rs. 1,35,109. By city, Mumbai and Kolkata mirrored prices at Rs. 1,47,499, while Delhi was at Rs. 1,49,403 and Chennai at Rs. 1,40,747.
US gold prices drifted higher on Monday after recent soft economic data sharply lowered expectations of a Federal Reserve rate hike in October, increasing the appeal of the non-yielding asset.
Spot gold was up 0.4% to USD 4,158.17 per ounce. US gold futures for December delivery rose 0.6% to USD 4,186.40.
Spot silver gained 1.7% to USD 61.40 per ounce, platinum edged higher 0.6% to USD 1,708.48 , and palladium firmed 0.6% to USD 1,175.04.
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“The softer labour market data has helped dial back October Fed hike expectations, which is providing gold some support. But the market is still treating the Fed’s broader hiking cycle as intact even if a pause occurs in October,” said Tim Waterer, Chief Market Analyst at KCM Trade.
“Middle East developments will continue to matter for gold, particularly through their impact on oil prices and the broader inflation outlook. Volatility is likely to remain elevated while oil, yields, and Fed expectations stay in flux,” he further added.
HSBC lowered its average 2026 gold forecast to USD 4,490 per ounce from USD 4,560 and reduced its 2027 forecast to USD 4,825, citing expectations of further US rate hikes and higher oil prices.
Goldman Sachs maintained its end-2027 forecast at USD 5,400.
Technically, gold is witnessing fresh buying, with open interest rising 1.50%. Gold is gaining support near Rs. 1,49,570, and a sustained break below this level could open the way toward Rs. 1,48,750. On the upside, resistance sits near Rs. 1,50,975, and a decisive move above it could push prices toward Rs. 1,51,560.
