Gold Prices React to Economic Indicators and Recession Concerns

Gold prices rose moderately after the US producer price index report for April came in at up 0.2%, versus expectations for up 0.3% from March, and compares to a drop of 0.5% in the March report, month-on-month. The Bank of England raised its main interest rate by 0.25%, as expected. China’s inflation fell to the lowest level in two years, as the April consumer price index rose 0.1%, year-on-year. The silver bulls have the solid overall near-term technical advantage.