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Gold traded lower on MCX on October 30 amid higher oil prices, which fueled inflation concerns. Meanwhile, December gold futures fell 0.49% to Rs. 1,41,902 per 10 grams, and December silver futures declined 1.65% to Rs. 1,86,331. Brent crude futures fell 1.13% to USD 116.2 per barrel. US West Texas Intermediate (WTI) declined 1.24% to USD 103.3 per barrel.
24K gold fell by Rs. 169 to Rs. 1,42,260 per 10 grams, while 22K gold also declined by Rs. 155 to Rs. 1,30,400. Citywise, Mumbai and Kolkata mirrored prices at Rs. 1,42,260, while Delhi was at Rs. 1,42,410 and Chennai at Rs. 1,42,260.
US gold prices rose as higher oil prices fueled inflation concerns and strong US inflation data strengthened the case for another Federal Reserve rate hike later this year.
Spot gold was down 0.71% at USD 3,992.96 per ounce. US gold futures for December delivery dropped 0.69% to USD 4,003.72. Spot silver fell 1.39% to USD 51.45 per ounce, platinum dropped 2.02% to USD 1,461.44, and palladium fell 1.20% to USD 994.
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XAU/USD trades at USD 3,992 with a bearish near-term tone as it holds below the 20-day exponential moving average (EMA) near USD 4,102. The Relative Strength Index (RSI) around 36 hovers just above oversold territory, hinting at continued selling pressure.
On the upside, immediate resistance sits at the 20-day EMA around USD 4,102. A daily close above this level would be needed to ease the current bearish bias. On the downside, there is no clear support; traders will likely look to recent price lows as provisional support.
“Gold’s slide is asking serious questions of technical support around the USD 4,000 level. Dip buying has previously limited declines, but it remains to be seen whether value buying will come to gold’s rescue,” said Tim Waterer, chief market analyst at KCM Trade.
“There were enough bullish indicators in the US macro data this week to keep the Fed on track for a potential December hike, which, combined with oil at present levels, means that gold continues to lose out from an inflation perspective,” he further added.