Gold saw moderate price gains after pessimistic US GDP data

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(Kitco News) – Gold prices rose from weaker levels in early US trading on Thursday, after a downbeat US economic report may give the Federal Reserve a pause in its aggressive stance on monetary tightening. Gold and silver hit a nine-week low overnight. Gold futures for June last rose $3.40 at $1,892.30, and May Comics silver prices last fell $0.26 at $23.20 an ounce.

The recently released US Q1 GDP report showed a surprisingly weak reading of -1.4%. This was worse than expectations for a 1.0% rise compared to the Q4 2021 GDP reading of 6.9%.

Global stock markets mostly rose overnight. US stock indices are pointing to higher openings when the New York daily session begins. US stock index bulls are supporting their markets after they came under attack on Tuesday. Major indicators remain in bearish near-term trends on the daily charts, indicating that the path of least resistance for prices remains sideways to the downside.

This week is the busiest week for US corporate earnings this quarter. So far most earnings reports have been upbeat.

In the overnight news, the Japanese yen hit a 20-year low against the US dollar as the Bank of Japan reinforced its commitment to low interest rates despite rising inflation. Japan is bucking the trend of other major countries that have or are considering tightening their monetary policies. Meanwhile, the euro fell to a five-year low against the dollar as rising energy prices crippled the eurozone economy. The US dollar index rose strongly again today and hit a two-year high.

Other major offshore markets today see NYMEX crude futures prices slightly lower and are trading around $101.50 per barrel. The 10-year US Treasury yield currently fetches 2.804%.

US economic data due for release on Thursday includes the weekly jobless claims report, the advance estimate of first-quarter gross domestic product, and the Kansas City Fed Manufacturing Survey.

Technically speaking, the June bears gold futures contract has a slight general technical advantage in the near term. The next bullish price target for the bulls is to achieve a close in the April futures contract above the strong resistance at this week’s high of $1,935.50. The bears’ next bearish price target in the near term is pushing futures prices below the strong technical support level at $1,850.00. The first resistance is seen at the overnight high at $1,892.70 and then at $1,900.00. First support is seen at the overnight low at $1,870.90 and then at $1,850.00. Wyckoff Market Rating: 4.5

May silver futures sellers have the overall technical advantage in the near term amid the recent drop in prices. The next bullish price target for the silver bulls is to close prices above the strong technical resistance at $24.50 an ounce. The next target for the bears downtrend price is to close the price below the strong support level at $22.00. First resistance is seen at the overnight high at $23.41 and then Wednesday’s high at $23.765. Next support is seen at the day’s low at $23.00 then $22.75. Wyckoff Market Rating: 3.5.

24 hour silver chart [ Kitco Inc. ]

Not giving an opinion: The opinions expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to conduct any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will be liable for losses and/or damages arising from the use of this publication.

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