Gold steadied as investors await GDP and inflation data

Gold prices are steady ahead of key US economic growth and inflation data, which are to be released this week. 

Bullion prices surged this week driven by US dollar weakening. Market watchers have come around to the view that US inflation has peaked and their expectations have caused the dollar to lose value. This may trigger a slower pace of rate hikes by the Federal Reserve.

Focus now turns to GDP data for the third quarter. According to preliminary data, the key economic indicator increased at a 2.9% annualized rate during the period. By contrast, the GDP growth prediction was less optimistic in September. At the same time, analysts expect it to remain unchanged. Its print is due out at 13:30 GMT.

In addition, investors are watching for data coming later this week, including the U.S. Personal Consumption Expenditure price index, which is the Fed's favorite inflation gauge. According to analysts' estimates, it will ease further in November. 

There is a chance that developed markets will deliver more interest rate hikes, and it may keep gold prices subdued in the coming months.  The Bank of Japan, the European Central Bank and the Bank of England are currently sending hawkish signals.