Gold price remains below $1,850 as U.S. GDP contracts 1.5% in Q1

New York (May 26) The gold market remains under pressure, seeing no major buying momentum as the U.S. economy lost more ground than expected in the first quarter.

Thursday, Commerce Department said in its preliminary reading, U.S. Q1 GDP fell 1.5% versus markets' to see a contraction of 1.3%. This is the second estimate of U.S. GDP; the initial estimate showed the economy contracting by 1.4%.

The gold market is not seeing much reaction to the disappointing economic data. June gold futures last traded at $1,842.10 an ounce, down 0.23% on the day.  Market analysts have said that gold prices need to hold gains above $1,850 an ounce to start attracting consistent buying interest.

Kitco