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Gold traded higher on MCX on November 13 as investors await US Producer Price Index data due at 1330 GMT for further clues on inflation and the Federal Reserve's interest rate outlook. Meanwhile, December gold futures rose 0.84% to Rs. 1,37,372 per 10 grams, and December silver futures advanced 0.52% to Rs. 1,79,654.
Brent crude futures fell 0.33% to USD 95.50 per barrel. US West Texas Intermediate (WTI) dipped 0.55% to USD 88.25 per barrel.
24K gold fell by Rs. 131 to Rs. 1,38,490 per 10 grams, while 22K gold also declined by Rs. 120 to Rs. 1,26,950. Citywise, Mumbai and Kolkata mirrored prices at Rs. 1,38,490, while Delhi was at Rs. 1,38,640 and Chennai at Rs. 1,38,490.
US gold prices gained on Friday after prices hit a more than one-year low in the previous session, while market focus shifted to upcoming US inflation data.
Spot gold rose 1.10% to USD 3,920.24 per ounce. US gold futures for December delivery edged up 0.97% higher to USD 3,922.97. Spot silver advanced 0.76% to USD 50.45 per ounce, platinum gained 1.17% at USD 1,539.25, and palladium edged up by 1.62% to USD 1,014.82.
Also Read: Gold Prices Rebound After US Midterms as Fed Hike Risks Grow
“Today's move is more of a positioning adjustment, given that several intraday short-term momentum indicators had kind of hit an extreme oversold level after yesterday's dramatic fall,” said Kelvin Wong, a senior market analyst at OANDA.
“A short-term driver that could be bullish for gold will be a sudden turn of the US Treasury yield, that would potentially slow down the US dollar,” he further added.
XAU/USD rebounds to USD 3,920, but suggests a bearish near-term tone as it remains below the 20-day exponential moving average (EMA) around USD 4,031. The Relative Strength Index (14) near 41 stays below the neutral 50 line, indicating continued but not extreme selling pressure.
On the upside, immediate resistance is defined by the 20-day EMA around USD 4,031, and a daily close above this hurdle would be needed to ease the current downside bias. On the downside, spot gold would be exposed to USD 3,800 and USD 3,700 if it fails to hold the immediate support at USD 3,850.