Gold prices are stabilizing after decline caused by growing concerns over recession

On Thursday, the price of gold started stabilizing after a certain decrease amid rising uncertainty regarding possible recession and further course of the U.S. monetary policy.

New data on retail sales and industrial production in the United States in December were published, and in both cases, figures turned out weaker than forecasted. This fact caused fears of a more pronounced economic slowdown in the country to rise again.

At the same time, the Federal Reserve report suggests a slight economic growth in the upcoming months despite easing price pressure. In December, producer price inflation was lower than it was initially expected.

Updated information on inflation in Great Britain and the E.U. countries reflected persisting price growth in these regions. This fact will likely lead to further interest rate hikes being delivered by central banks of the mentioned countries. This might also serve as an additional pressure factor for bullion prices.