Gold traded lower on MCX on October 21 as rising oil prices fuelled inflation concerns. Investors are also awaiting next week’s US Federal Reserve policy meeting for clues about the future direction of interest rates. Meanwhile, December gold futures fell 0.37% to Rs. 1,45,972 per 10 grams, and December silver futures declined 1.08% to Rs. 2,09,207. Brent crude futures rose 1.47% to USD 110.4 per barrel. US West Texas Intermediate (WTI) declined 1.37% to USD 99.16 per barrel.
Domestic Gold Prices
24K gold fell by Rs. 1,153 to Rs. 1,46,084 per 10 grams, while 22K gold also declined by Rs. 1,056 to Rs. 1,33,812. Citywise, Mumbai and Kolkata mirrored prices at Rs. 1,46,084, while Delhi was at Rs. 1,46,101 and Chennai at Rs. 1,47,415.
US Gold Prices
US gold prices eased on Wednesday as higher oil prices stoked inflationary concerns. Spot gold fell 0.2% to USD 4,118.18 per ounce, while US gold futures for December delivery dipped 0.2% to USD 4,136.20. Spot silver slid 0.9% to USD 57.44 per ounce, platinum dropped 0.6% to USD 1,638.61, and palladium slipped 1.1% to USD 1,090.84.
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Key Levels to Watch
XAU/USD trades at USD 4,124, retaining a bearish near-term bias as it holds below the 20-day exponential moving average (EMA) at USD 4,178.85. Relative Strength Index (RSI) at 42 stays in mildly negative territory, suggesting subdued bullish momentum rather than oversold conditions.
“The metal could remain under some pressure as crude prices returned to the upside, keeping inflationary pressures in place and reinforcing hawkish monetary policy expectations,” said Bas Kooijman, CEO and Asset Manager of DHF Capital S.A.
"At this point, if some of these rate hikes that the markets have baked in for next year fall out of the forecast or at least downgrade in their likelihood, then that's likely to send gold higher," noted Ilya Spivak, Head of Global Macro at Tastylive.
On the upside, immediate resistance lies near the 20-day EMA at USD 4,179, and a sustained break above this level would be needed to ease the current downward bias and open the way for a more sustained rebound. On the downside, the psychological level at USD 4,000 is the key support zone.