MCX Gold Slips 0.14% to Rs 1,52,370 as Middle East Tensions and Fed Rate Hike Expectations Weigh

Gold prices moved lower on the Multi Commodity Exchange (MCX) on September 9, pressured by rising inflationary concerns after fresh attacks on ships in the Middle East and growing expectations of a US interest rate hike. October gold futures fell 0.14% to Rs 1,52,370 per 10 grams, while September silver futures declined 0.13% to Rs 2,39,113.

Oil Prices Edge Higher

Brent crude futures climbed 1.46% to USD 99.35 per barrel, while US West Texas Intermediate (WTI) rose 1.30% to USD 94.24 per barrel, adding to inflation worries in global markets.

Fed Rate Hike Expectations

According to the CME FedWatch Tool, markets currently price in a 39.5% probability that the Federal Reserve will keep rates unchanged in September, and a 60.5% chance of a rate hike. The possibility of higher borrowing costs continues to cap gold’s upside momentum.

Domestic Gold Prices

In the Indian domestic market, 24K gold fell by Rs 104 to Rs 1,54,310 per 10 grams, while 22K gold declined by Rs 95 to Rs 1,41,450. City-wise, Mumbai and Kolkata quoted gold at Rs 1,54,310, Delhi at Rs 1,54,460, and Chennai at Rs 1,54,310.

US Gold Prices and Other Metals

In the international market, spot gold rose 0.56% to USD 4,380.01 per ounce. US gold futures for December delivery dropped 0.38% to USD 4,422.31. Spot silver gained 0.73% to USD 66.23 per ounce, platinum rose 0.78% to USD 1,833.60, and palladium firmed 0.28% to USD 1,349.50.

Key Levels to Watch

“Gold is range-bound because it is capped by a higher probability of raising interest rates, which continues to hinder momentum in the market,” said Daniel Pavilonis, senior market strategist at Stone X.

Ahmad Assiri, market strategist at Pepperstone Group Ltd, noted: “A softer reading will be a relief for gold traders, as it would support the case for holding rates steady. The greater risk lies in an upside inflation surprise, which would likely strengthen the case for a hike, creating what could be massive pressure on the precious metal.”

Internationally, gold is likely to find support at USD 4,400–USD 4,365 per troy ounce, with resistance at USD 4,474–USD 4,510. Silver support is at USD 65.80–USD 64.70, while resistance is placed at USD 68–USD 69.10 per troy ounce.

On the MCX, gold has support at Rs 1,51,500–Rs 1,50,150 and resistance at Rs 1,53,300–Rs 1,54,100. Silver is expected to find support at Rs 2,37,700–Rs 2,35,000, with resistance at Rs 2,41,400–Rs 2,44,000.