Gold traded lower on MCX on October 22 amid elevated oil prices. 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 1.27% to Rs. 1,44,226 per 10 grams, and December silver futures declined 2.63% to Rs. 2,03,657. Brent crude futures rose 1.87% to USD 110.8 per barrel. US West Texas Intermediate (WTI) advanced 1.55% to USD 98.66 per barrel.
Domestic Gold Prices
24K gold fell by Rs. 170 to Rs. 1,44,380 per 10 grams, while 22K gold also declined by Rs. 155 to Rs. 1,32,350. Citywise, Mumbai and Kolkata mirrored prices at Rs. 1,44,380, while Delhi was at Rs. 1,44,530 and Chennai at Rs. 1,44,380.
US Gold Prices
US gold prices declined over 1% on Thursday as rising oil prices stoked inflation concerns, while investors awaited next week's Federal Reserve meeting. Spot gold slid 1.1% to USD 4,094.90 per ounce.
US gold futures for December delivery dropped 0.9% to USD 4,111.40. Spot silver dropped 2.6% to USD 56.44 per ounce, platinum slid 2.1% to USD 1,594.25 and palladium fell 2.6% to USD 1,059.05.
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Key Levels to Watch
If oil prices continue to rise, inflation expectations could increase, raising the likelihood of higher interest rates over the longer term and weighing on gold, said Kelvin Wong, a senior market analyst at OANDA. Investors anticipate elevated interest rates at both the short and long ends of the curve, reducing gold's appeal by increasing the opportunity cost of holding the non-yielding asset, Wong said.
XAU/USD trades at USD 4,095, with a bearish near-term outlook as it holds below the 20-day Exponential Moving Average (EMA) around USD 4,172. The Relative Strength Index (RSI) around 40 stays in negative territory, hinting at continued but not extreme downside momentum.
On the upside, immediate resistance is seen at 20-day EMA near USD 4,172, and a daily close above this level would ease the downside trend. On the downside, the psychological level of USD 4,000 is the major support to look for.