On Monday, gold was stabilized ahead of new data release in the U.S. This updated info will gauge whether the world's largest economy could face a potential recession in 2023.
The main focus this week will be the fourth quarter (Q4) U.S. GDP data. The statistics must be out Thursday at 1:30 p.m. GMT. Growth momentum is expected to slow in Q4 compared to previous months. This is driven by the fact that the effects of monetary tightening are already getting evident in the economy.
The forecast of slower rate hikes also had an impact on the U.S. currency and U.S. Treasury bond yields. It had an even more positive effect on gold prices.
Besides that, the score of Core Personal Consumption Expenditures Index will also be under active consideration in the near future. The Fed perceives the index as an inflation indicator. The figures must decrease in December in comparison to the previous month. However, the level will still remain well above the Fed's target of 2% per annum.