Gold Dips on MCX Amid US-Iran Tensions and Stronger Dollar
Gold prices on the Multi Commodity Exchange (MCX) saw a decline on October 6, driven by geopolitical tensions between the US and Iran. December gold futures dropped 0.14%, settling at Rs. 1,49,100 per 10 grams, while December silver futures fell 0.21% to Rs. 2,25,611. The decline in precious metals contrasted with gains in crude oil, as Brent crude futures rose 0.25% to USD 100.6 per barrel, and US West Texas Intermediate (WTI) climbed 0.23% to USD 89.64 per barrel.
In the global market, US gold prices also eased slightly on Tuesday, pressured by a stronger US dollar and higher Treasury yields. Spot gold slipped 0.3% to USD 1,928.83 per ounce, while US gold futures changed little, settling at USD 1,955.90. Other precious metals also saw declines, with spot silver falling 0.6% to USD 20.69, platinum losing 0.5% to USD 1,712.20, and palladium easing 0.5% to USD 1,166.86.
Analysts noted that while near-term pressures were bearish, long-term fundamentals remained supportive for gold. Kyle Rodda, senior financial market analyst at Capital.com, highlighted geopolitical risks in the Middle East as a potential catalyst. He also noted that changes in US rate expectations could drive the next significant move in gold prices.
Technical analysis showed that XAU/USD was trading near USD 1,930, under downside pressure as it held below key moving averages. Immediate resistance was seen at USD 1,971.35, with more distant barriers at USD 2,030.10 and USD 2,031.81. Support was aligned with a rising trendline around USD 1,800, where buyers might intervene if the decline extended.