Gold prices were largely unchanged as the U.S. economy slowed further in the fourth quarter and inflation pressures remained elevated, keeping investors cautious about the outlook for interest rates.
The latest data pointed to additional cooling in economic activity during Q4, reinforcing concerns that growth momentum is weakening. At the same time, inflation pressures were described as still elevated, a combination that has supported demand for gold while limiting large directional moves.
With the economic slowdown and inflation dynamics moving in opposite directions for rate expectations, gold appeared to be “treading water,” reflecting a market that is waiting for clearer signals on the path of monetary policy.
