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(Kitco News) - Gold prices are near steady but down from overnight highs in early U.S. trading Thursday, in the immediate aftermath of a downbeat U.S. economic report that falls into the camp of those expecting a U.S. economic recession in the coming months. Such a scenario would likely mean less consumer and commercial demand for metals. June gold was last up $0.80 at $1,997.00 and May silver was up $0.169 at $25.05.
First-quarter U.S. GDP growth came in weaker than expected at up 1.1%, year on year, compared to expectations for a rise of 2.0%. The closely watched PCE price index of the GDP data came in hot at up 4.2%; it was expected to be up 3.7%, year-on-year, versus a rise of 3.9% in the fourth quarter. The hotter PCE number falls into the camp of the U.S. monetary policy hawks, who want the Federal Reserve to keep interest rates higher for longer, to choke off problematic inflation.
Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Risk appetite is a bit better Thursday, but by no means robust, following the big drop in share price of First Republic Bank earlier this week. Also, the specter of a U.S. economic recession is moving closer to the front burner of the marketplace. It could be that the growing U.S. government debt burden and congressional wrangling regarding what to do about it are also crimping investor enthusiasm. Reads a Wall Street Journal headline today: "Banking turmoil is tip of debt iceberg."
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| The banking crisis sparked inflows, but gold's rally "has been about the dollar" - GraniteShares CEO Will Rhind |
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are slightly up and trading around $74.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching around 3.46%.
Other U.S. economic data due for release Thursday includes weekly jobless claims and the Kansas City Fed manufacturing survey.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls have the firm overall near-term technical advantage. However, a six-week-old uptrend on the daily bar chart has stalled out. Bulls' next upside price objective is to produce a close in June futures above solid resistance at the April high of $2,063.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the April low of $1,965.90. First resistance is seen at the overnight high of $2,013.30 and then at this week's high of $2,020.20. First support is seen at this week's low of $1,984.40 and then at last week's low of $1,980.90. Wyckoff's Market Rating: 7.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the overall near-term technical advantage. However, an uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at the April high of $26.235. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at this week's high of $25.435 and then at last week's high of $25.71. Next support is seen at last week's low of $24.715 and then at this week's low of $24.53. Wyckoff's Market Rating: 7.0.
