Prices of gold have fallen throughout the month. It raises the question of whether this is a new trend and if there are any signs that things could change. According to the US macro data, gold prices are in a weak spot right now. However, the picture gets a bit murky beyond that. Uncertainty is where gold shines.
The US gave a second glance at Q4 GDP. It revised it down by 2 decimals to 2.7%, which is a significant drop from the flash number. The Fed’s actions aside, the result showed that the economy is resilient. This was in line with stronger retail sales and job numbers earlier in the month which all contributed to the lower price of gold.
There’s more to the picture
After taking into account slower than expected consumer spending, the GDP number has been revised lower. Americans are spending less, which is a sign that the largest economic component is in trouble. People are feeling the pinch in their pockets as inflation has caused real wages to go negative for more than a year. It is bad news for the economy and the people. However, technical quirks can make it look positive in statistics.
A declining trade is one of the major components driving positive GPD.