Gold futures erased small losses to edge into positive territory after revised data showed the U.S. economy shrank less than expected in the first quarter.
Gold for August delivery on Comex GCQ5, +0.16% rose 60 cents, or 0.1%, to trade at $1,189.50 an ounce after earlier trading as low as $1,186. July silver SIN5, +0.34% advanced 4.6 cents, or 0.3%, to $16.715 an ounce.
The U.S. economy shrank at an 0.7% annual pace in the first quarter, the Commerce Department reported Friday, versus an initial estimate of a 0.2% gain. Economists had expected the downward revision, with those surveyed by MarketWatch producing a consensus forecast for a 1% contraction.
Overall price action was relatively muted. The data comes as investors continue to weigh the timing of a Federal Reserve interest-rate hike. Analysts said the GDP data does little to change expectations.
“The Fed, market participants and just about everyone believes Q1’s issues were transitory in nature and as such, a revision into negative territory is unlikely to affect the broader debate,” said Dan Greenhaus, chief strategist at BTIG in New York.
On a most-active contract basis, gold futures are on track to end May with a 0.7% monthly rise, according to FactSet data.
In other metals trade, July platinum PLN5, +0.01% rose $1.10, or 0.1%, to $1,117.40 an ounce, while June palladium PAM5, -0.39% lost $3.05, or 0.4%, to $781.75 an ounce.
July copper HGN5, -0.33% fell 1.2 cents, or 0.4%, to $2.7555 a pound.
