Gold Prices Today: Yellow metal moves towards record highs as Fed's Kashkari warns of recession

Domestic gold rates are likely to remain high on robust demand from consumers ahead of Akshaya Tritiya and amid the summer wedding season.

Gold prices rose in domestic as well as international markets as safe-haven demand increased after Minneapolis Federal Reserve president Neel Kashkari said the US may face a recession this year.

At 10.38 am, Comex gold was at $2,034.15 a troy ounce, up 0.8 percent from the previous close, while the June gold contract on the Multi Commodity Exchange of India (MCX) was at around Rs 60,872 for 10 grams, up 0.6 percent.

Domestic gold rates are likely to remain high on robust demand from consumers ahead of Akshaya Tritiya on April 22 and amid the summer wedding season.

Kashkari said that rising interest rates in the US and a slowdown in lending rates after the collapse of several banks in the country may trigger a potential recession in 2023.

Data watch

The comments come ahead of the release of the US consumer price index data and the minutes of the Federal Reserve’s last policy meeting later in the day. Through the minutes, investors will try to gauge the Fed’s stance on monetary policy.

The markets are pricing a 25 basis point raise by the Fed with a nearly 70 percent possibility, according to the CME Fedwatch tool.

“Gold demand should remain healthy as a plethora of risks remain on the table this week,” Ed Moya, senior market analyst at OANDA, Americas, said in a note.

“Gold’s path to record territory could become very clear post inflation report and if more signs of banking stress emerge.”

There is also a possibility of a pause in Fed’s rate-hike cycle at its next meeting. A pause is likely to keep gold in bullish territory as gold is a non-yielding asset.

Comex gold has support at $2,000-$1,984, while resistance is at $2,034-$2,045 per ounce. Silver has support at $24.84-$24.55, while resistance is at $25.45-$25.80 per ounce.

On the MCX, gold has support at Rs 60,280-Rs 60,060 and resistance at Rs 60,720-Rs 60,950, while silver is seen in the range of Rs 73,900-Rs 75,550.

“We suggest buying gold on dips around Rs 60,250 with a stop loss of Rs 60,000 for a target of Rs 60,720, and also suggest buying silver on dips around Rs 74,500 with a stop loss of Rs 73,900 for a target of Rs 75,800," said Manoj Kumar Jain, director at Prithvi Finmart.

(With agency inputs)

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