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Gold traded flat on MCX on September 22 amid a continued decline in oil prices over the past few sessions, which reduced expectations of further interest-rate hikes by the Federal Reserve. October gold futures rose 0.05% to Rs. 1,53,171 per 10 grams, while September silver futures advanced 0.13% to Rs. 2,39,620.
Meanwhile, Brent crude futures rose 1.25% to USD 101.6 per barrel. US West Texas Intermediate (WTI) edged higher by 0.96% to USD 93.26 per barrel.
24K gold rose by Rs. 17 to Rs. 1,54,750 per 10 grams, while 22K gold also advanced by Rs. 15 to Rs. 1,41,850. By city, Mumbai and Kolkata mirrored prices at Rs. 1,54,750, while Delhi was at Rs. 1,54,900 and Chennai at Rs. 1,54,750.
US gold prices struggled for momentum on Tuesday as expectations of interest rates staying higher for longer weighed on sentiment, with investors awaiting comments from US Federal Reserve officials for policy clues.
Spot gold declined 0.08% at USD 4,340.26 per ounce. US gold futures fell 0.18% at USD 4,376.20. Spot silver fell by 0.12% to USD 65.95 per ounce while platinum dipped 0.81% to USD 1,789.83 and palladium declined 0.94% at USD 1,295.78 per ounce.
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With US economic data limited this week, investors will focus on comments from Fed officials for signs of whether the central bank is leaning toward another rate increase in October, as well as on crude oil prices, said Chris Weston head of research at Pepperstone.
"While crude has come modestly off its recent highs, a reversal higher that builds inflation expectations would only intensify the rates story, and gold would likely continue to face headwinds," said Weston.
XAU/USD traded around USD 4,340 on the daily chart, holding just above the medium-term moving averages. The 50-day simple moving average (SMA) at USD 4,300 and the 100-day SMA at USD 4,320 sit below price and suggest underlying trend support, while USD 4,400 acts as immediate resistance.
The ongoing test of the rising support trendline around USD 4,340 keeps the broader uptrend intact, and a neutral near-term bias is supported by the Relative Strength Index (RSI) hovering close to the 50 line at 48.5.
On the topside, immediate resistance emerges at USD 4,400, with a more significant barrier at the 200-day SMA around USD 4,542. On the downside, support clustered around USD 4,340 is the first level to watch; a daily close below it would expose USD 4,320.
