Gold traded higher on MCX on October 12 after US President Donald Trump said he is ‘going to look at’ joining Saudi Arabia in the fight against Iran-backed Houthis after deadly airport strikes. Meanwhile, December gold futures dipped 0.49% to Rs. 1,50,750 per 10 grams, and December silver futures declined 0.14% to Rs. 2,25,449.
Brent crude futures edged lower by 1.38% to USD 103.3 per barrel. US West Texas Intermediate (WTI) declined 1.74% to USD 90.25 per barrel.
Domestic Gold Prices
24K gold fell by Rs. 44 to Rs. 1,50,980 per 10 grams, while 22K also declined by Rs. 40 to Rs. 1,38,400. Citywise, Mumbai and Kolkata mirrored prices at Rs. 1,50,980, while Delhi was at Rs. 1,51,130 and Chennai at Rs. 1,50,980.
US Gold Prices
US gold prices gained on Monday, supported by a softer dollar and lower oil prices, as investors awaited key US inflation data this week for clues on the Federal Reserve's next policy move.
Spot gold rose 0.09% to USD 4,198.18 per ounce. US gold futures gained 0.13% to USD 4,221.776. Spot silver rose 0.40% to USD 61.06, platinum gained 0.64% to USD 1,700.26, while palladium edged up by 0.60% to USD 1,159.05.
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Key Levels to Watch
XAU/USD trades at USD 4,198, keeping a bearish near-term bias as spot holds below its key moving averages. Price remains under the 100-day simple moving average (SMA) near USD 4,256 and the 50-day SMA around USD 4,338, while the longer-term 200-day SMA is up at USD 4,529. The Relative Strength Index around 48 sits just below the neutral line.
On the upside, immediate resistance is near USD 4,256, followed by USD 4,338 as the next hurdle before the USD 4,529 comes into play. On the downside, the previously rising trend-line support now lies around USD 4,001; a sustained break below this would likely open the door for a deeper correction.
“Softer oil prices on the back of Trump’s reported energy ceasefire between Russia and Ukraine, combined with a more subdued dollar, have given gold a window of opportunity to the upside to start the week,” said Tim Waterer, Chief Market Analyst at KCM Trade.
“As oil eases, it takes some of the immediate inflation and interest rate anxiety out of the market, which helps gold from a yield perspective.” he futher added.