Gold Prices Today: Recession fears, weak dollar to support precious metal as investors eye US GDP data

Gold, Gold prices

Gold was trading higher in India on January 22 morning, mirroring gains in the international market as a softer dollar and prospects of slower interest rate hikes by the US Federal Reserve boosted bullion's appeal.

At 10.01 am, gold was trading 0.11 percent higher on the Multi Commodity Exchange (MCX) at Rs 56,722 for 10 grams, while silver was up 0.59 percent at Rs 68,953 a kilogram.

Spot gold was up 0.3 percent at $1,932.12 a troy ounce at 0255 GMT. US gold futures, too, were up 0.3 percent at $1,934.70.

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Ravindra V Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities

Comex gold prices rose for the fifth week in a row to a fresh nine-month high of $1,939 in the week gone by, as a softer dollar, poor corporate earnings and layoffs raised concerns of a recession.

The yellow metal has been witnessing a one-sided rally since early November, after touching a 28-month low of $1,618, on signs the Federal Reserve was turning less hawkish, spurring a decline in the greenback and US treasury yields.

Prospects of a slowdown in the US, cooling inflation and labour market coupled with a Fed pivot might continue to bolster gold prices.

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver ended on a positive note in the international markets. The February gold futures contract settled at $1,927.70, up 0.2 percent, and the March silver futures contract settled at $24.06, up 0.8 percent. Domestic markets also closed higher.

We expect US recession fears and weakness in the dollar to continue supporting gold and silver prices in the international market.

Gold has support at $1,912-1,900, while resistance is at $1,934-1,950. Silver has support at $23.80-23.55 and resistance at $24.40-24.70.

On MCX, gold has support at Rs 56,500-56,265 and resistance at Rs 56,800-56,980, while silver has support at Rs 68,100-67,750 and resistance at Rs 69,000-69,660.

We suggest buying gold on dips around Rs 56,440 with a stop loss of Rs 56,250 for a target of Rs 56,900.

Deveya Gaglani, Research Analyst-Commodities, Axis Securities

Gold prices are near a nine-month high at around $1,940 as recessionary concerns prompt safe-haven buying.

Traders will focus on the US fourth-quarter GDP data due on January 26. We expect a slowdown in the fourth quarter from the third as the economy has started to feel the effects of tight monetary policy and recent tech layoffs.

At Comex, the immediate resistance zone is at $1,950 and support at $1,900. In the domestic market, strong resistance is at Rs 56,850 and support at Rs 56,000.

With agency inputs

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