Gold futures rallied the most in a week on speculation that the Federal Reserve will maintain bond purchases to bolster the U.S. economy, boosting demand for the precious metal as a store of value. Silver also rose.

U.S. gross domestic product expanded at a 2.4 percent annualized rate in the first quarter, the Commerce Department said today. The median forecast in a Bloomberg survey called for no revision from the 2.5 percent pace initially reported.

Initial jobless claims rose 10,000 to 354,000, above the 340,000 forecast. The dollar fell for a second day against a basket of currencies “Today's data is an indication that the economy has not fully recovered, and so the Fed will not end its stimulus in a hurry,” Phil Streible, a senior commodity broker at R.J.O'Brien & Associates in Chicago, said in a telephone interview.

Eoin Treacy's view Gold has been ranging above the mid-April lows for the last two weeks and firmed today to push back above the $1400 area. There is scope for some additional improvement given the supporting building since early May. However, a sustained move above $1500 would be required to begin to question the medium-term downward bias.

Silver lost downward momentum over the last month and failed to sustain the intraday breakdown from the current range two weeks ago. It is now firming from the $22 area and a sustained move above $24 would break the progression of lower rally highs and begin to suggest a return to demand dominance beyond the short term.

Platinum has been ranging mostly above $1400 for more than a year and is currently firming from the lower boundary.

Palladium continues to rebound from the April lows and a sustained move below $720 would be required to question current scope for additional upside.