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Gold traded lower on MCX on September 17 following a 25-basis-point rate hike to 3.75%-4% by the US Federal Reserve amid inflation concerns and high energy prices. October gold futures fell 1.11% to Rs. 1,50,778 per 10 grams, while September silver futures declined 1.19% to Rs. 2,31,982.
Meanwhile, Brent crude futures rose 0.03% to USD 105.9 per barrel. US West Texas Intermediate (WTI) edged lower by 0.05% to USD 104.4 per barrel.
24K gold fell by Rs. 60 to Rs. 1,52,840 per 10 grams, while 22K gold also declined by Rs. 55 to Rs. 1,40,100. By city, Mumbai and Kolkata mirrored prices at Rs. 1,52,840, while Delhi was at Rs. 1,52,990 and Chennai at Rs. 1,52,840.
US gold prices rose more than 1% on Thursday as investors digested the US Federal Reserve's interest rate hike and its signal that further policy tightening may follow.
Spot gold was up 1.1% at USD 4,310.49 per ounce. US gold futures for December delivery were down roughly 1% at USD 4,348.70.
Spot silver rose 1.4% at USD 63.83, platinum firmed 1.6% to USD 1,780.55 and palladium climbed 2% to USD 1,295.
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"Oil prices remain a key factor to watch. If oil prices continue to decline, that could support gold prices moving higher, at least from a medium-term perspective. Until that materializes, I expect gold to remain range-bound," said Kelvin Wong, senior market analyst at OANDA.
The current uptick in gold is also largely driven by technical factors, with the Fed's hawkish message already largely priced into the market, he added.
Technically, gold remains under short covering, with open interest declining 4.15% to 8,818. Support is placed at Rs. 1,51,630, with a break below opening Rs. 1,50,790, while resistance is seen at Rs. 1,53,130, above which prices could test Rs. 1,53,790.
Internationally, Gold shows a bearish near-term bias below USD 4,315-USD 4,320. The zone should act as a key pivotal point, above which the metal could target the 38.2% level near USD 4,404 and the 23.6% retracement at USD 4,513. On the downside, immediate support is seen at the 61.8% Fibonacci retracement at USD 4,226, followed by the deeper 78.6% level at USD 4,100.
