Gold Price Still Trying to Compete, US GDP Record Increase!

<p>&nbsp;Gold traded higher at the opening of the Asian trading session this morning despite the US Bureau of Economic Analysis (BEA) reporting that the economy grew at a higher rate of 3.3% compared to 2% as expected by the market.</p><p><br /></p><p>However, the price of gold managed to maintain its position above $2,020 when the economic data managed to drag it close to the level of $2,000 during the US GDP report.</p><p><br /></p><p>In the third quarter of 2023, Gross Domestic Product (GDP) rose strongly by 4.9%.</p><p><br /></p><p>The strong GDP report is expected to weaken the consensus supporting interest rate cuts by the Federal Reserve (Fed).</p><p><br /></p><p><br /></p><p>Meanwhile, positive US PMI and GDP data reflect the resilience of the US economy for now.</p><p><br /></p><p>This could provide guidance for the Fed in setting interest rate cuts in March.</p><p><br /></p><p>The US economy is growing well as consumer spending and strong labor demand indicate a positive outlook for tight monetary policy guidance.</p><p><br /></p><p>This week, investors will turn their attention to the core Personal Consumption Expenditure (PCE) price index data for December which will be published at 9.30pm tonight.</p><p><br /></p><p>For now, Fed policymakers are prioritizing core core inflation in deciding interest rate policy.</p>