Gold traded higher on MCX on October 19 amid heightened tensions between the US and Iran. Meanwhile, December gold futures gained 0.37% to Rs. 1,48,465 per 10 grams, and December silver futures advanced 0.45% to Rs. 2,12,140. Brent crude futures fell 1.84% to USD 107.8 per barrel. US West Texas Intermediate (WTI) declined 1.19% to USD 100.2 per barrel.
Domestic Gold Prices
24K gold rose by Rs. 38 to Rs. 1,48,040 per 10 grams, while 22K gold also advanced by Rs. 35 to Rs. 1,35,700. Citywise, Mumbai and Kolkata mirrored prices at Rs. 1,48,040, while Delhi was at Rs. 1,48,190 and Chennai at Rs. 1,48,040.
US Gold Prices
US gold prices rose on Monday as softer oil prices offered support, while investors assessed the chances of a Federal Reserve interest rate hike later this year. Spot gold rose 0.3% to USD 4,175.60 per ounce, while US gold futures for December delivery gained 0.4% to USD 4,196.40. Spot silver rose 0.9% to USD 57.54 per ounce, platinum gained 0.7% to USD 1,642.29 and palladium climbed 1.5% to USD 1,129.13.
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Key Levels to Watch
Gold posted a modest rise to start the week. “The metal is responding positively to the softer tone in oil prices from an inflation standpoint,” said Tim Waterer, Chief Market Analyst at KCM Trade.
“In the near term, a more sustained decline in oil prices or a clearer move lower in yields would be the most constructive catalysts (for gold), as both would ease inflation and rate concerns,” he further added.
XAU/USD trades at USD 4,176, holding below a dense band of moving average resistance that keeps the near-term bias lower. Spot is currently capped by the 21-day simple moving average (SMA) at roughly USD 4,191, with the 100-day SMA higher near USD 4,239 and the 50-day SMA even further overhead around USD 4,327.
On the downside, the next support emerges toward the prior rising trend-line break zone around USD 4,000, where buyers may attempt to rebuild if selling pressure resumes. On the upside, immediate resistance is seen at the 21-day SMA near USD 4,191, followed by the 100-day SMA at about USD 4,239; a daily close above these would be needed to ease immediate bearish pressure.