Gold traded lower on MCX on October 23 amid elevated oil prices heightened inflation worries, with the Federal Reserve due to deliver its policy decision next week. Meanwhile, December gold futures fell 0.99% to Rs. 1,41,885 per 10 grams, and December silver futures declined 3.16% to Rs. 1,93,285. Brent crude futures rose 0.50% to USD 113.7 per barrel. US West Texas Intermediate (WTI) advanced 0.62% to USD 100.1 per barrel.
Domestic Gold Prices
24K gold fell by Rs. 190 to Rs. 1,42,480 per 10 grams, while 22K gold also declined by Rs. 175 to Rs. 1,30,600. Citywise, Mumbai and Kolkata mirrored prices at Rs. 1,42,480, while Delhi was at Rs. 1,42,630 and Chennai at Rs. 1,42,480.
US Gold Prices
US gold prices fell sharply amid rising oil prices and growing inflation concerns. Gold is heading towards a weekly loss exceeding 3.5%. Spot gold declined 0.3% to USD 4,013.91 per ounce. The metal touched its lowest level since July 20. US gold futures fell 0.7% to USD 4,031.50 per ounce. Spot silver gained 1.63% to USD 53.70 per ounce, platinum rose 0.09% to USD 1,568.83 and palladium fell 0.21% to USD 1,052.97.
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Key Levels to Watch
XAU/USD trades at USD 4,014, keeping a bearish near-term bias as it holds below the 20-week exponential moving average (EMA) around USD 4,282. The Relative Strength Index (RSI) at 38 stays in neutral-to-weak territory and suggests that downside momentum is still present.
On the downside, Societe Generale sees Gold price declining towards the June low at USD 3,960/USD 3,940 and projections near USD 3,830 on the breakdown of the three-week long USD 4,066.64-USD 4,227.90 consolidation. On the upside, immediate resistance is aligned with the 20-week EMA at USD 4,282, and a sustained move above this would ease the current bearish tone.