(Kitco News) - Gold prices are trading moderately down in midday U.S. trading Wednesday. The yellow metal is seeing some pressure from a rallying U.S. stock market on news that a comprehensive study showed positive results for the treatment of Covid-19 patients with a drug, which in turn boosted the U.S. stock market. June gold futures were last down $3.00 an ounce at $1,719.00. May Comex silver prices were last up $0.239 at $15.41 an ounce.
The worldwide study that treated Covid-19 patients with the Gilead drug, remdesivir, showed those patients with a much faster recovery time than those patients treated with a placebo. This news gave traders and investors some good news, which has been very hard to come by on the pandemic matter.
It’s a big day for U.S. economic data Wednesday and it started with the advance estimate for first-quarter U.S. gross domestic product, which came in -4.8%. The number was expected to show economic growth of around -3.5% to -4.0%. Today’s number is a bad one but most agree the figure for the second quarter will be much worse.
The Federal Reserve’s Open Market Committee (FOMC) concludes its two-day meeting this afternoon with a statement on U.S. monetary policy. No changes are expected but traders will parse the statement as well as Fed Chairman Jerome Powell’s virtual press conference. Powell is expected to say the Fed “will do what it takes” to get the U.S. economy back on track.
The important outside markets see Nymex crude oil sharply higher and trading around $15.75 a barrel. There is still talk Nymex crude prices will again fall into negative territory when the June contract nears expiration in late May. The U.S. dollar index is weaker again today. The greenback bulls are fading this week, partly on notions other major countries’ economies are coming back to life faster than that of the U.S. The 10-year U.S. Treasury note yield is trading around 0.59% today—down from levels seen earlier this week.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, June gold futures bulls still have the firm overall near-term technical advantage. Gold bulls' next upside near-term price objective is to produce a close above solid technical resistance at the April high of $1,788.80. Bears' next near-term downside price objective is pushing prices below solid technical support at last week’s low of $1,666.20. First resistance is seen at today’s high of $1728.80 and then at this week’s high of $1,745.80. First support is seen at this week’s low of $1,704.10 and then at 1,700.00. Wyckoff's Market Rating: 7.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
May silver futures bulls have the slight overall near-term technical advantage. However, a four-week-old uptrend on the daily bar chart is still in jeopardy. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the April high of $16.30 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at $15.50 and then at last week’s high of $15.72. Next support is seen at this week’s low of $14.94 and then at $14.75. Wyckoff's Market Rating: 5.5.
May N.Y. copper closed up 300 points at 237.55 cents today. Prices closed nearer the session high today and hit a six-week high. The copper bulls have the overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 250.00 cents. The next downside price objective for the bears is closing prices below solid technical support at last week’s low of 214.95 cents. First resistance is seen at today’s high of 239.55 cents and then at 242.50 cents. First support is seen at today’s low of 233.40 cents and then at 230.00 cents. Wyckoff's Market Rating: 6.0.
