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Gold faces a perfect stagflation storm as Q4 GDP increases 0.7%
The gold market is once again caught in a short-term tug-of-war, holding support above $5,100 an ounce as stagflation fears reemerge, with the U.S. economy seeing slower growth in the fourth quarter and stubborn inflation. The U.S. Bureau of Economic Analysis (BEA) announced on Friday that the preliminary reading of fourth-quarter Gross Domestic Product (GDP) showed that the economy expanded by only 0.7%, down sharply from the initial estimate of 1.4%. The data was significantly weaker than expected, as economists had been expecting an unchanged reading. “Real GDP was revised down 0.7 percentage points from the ... (full story)