Gold futures were rising Wednesday as weak first-quarter U.S. GDP results increased demand for the safe-haven metal. May futures were climbing $6.60 to $899.40 an ounce at the Comex division of the New York Mercantile Exchange. The contract has traded as low as $887.80 and as high as $901.50 so far during the session. Silver futures were rising 24 cents to $12.64 an ounce and copper was adding 5 cents to $1.96 a pound. Gold prices were climbing overnight as investors anticipated weak economic results. The worse-than-expected GDP figure is "supporting gold prices right now", says Carlos Sanchez, associate director of research for CPM Group. "The support number is $880 and resistance is at $900, but is being tested today.
There is strong resistance at $920/$930. Our expectation is that gold will trade on either side of $900 for the remainder of the week and move higher" as weak economic data continues. The precious metals market is awaiting the Federal Reserve's assessment of the economy as it wraps up its interest-rate meeting later today. Analysts anticipate a grim outlook as well as weak auto sales and personal income and spending numbers later in the week. These catalysts "could provide a direction for prices and be positive for gold", says Sanchez. Typically investors add gold to their portfolio in times of increased market volatility. In gold stocks, Newmont Mining ( NEM) was rising 1.72% to $41.02, while shares of Yamana Gold ( AUY) were rising almost 2% to $8.13. Barrick Gold ( ABX) was adding 1.75% to $29.83. The company reported its profit fell by 28% in the first quarter, but it is expected to meet its production and lower cost targets for the rest of the year.