Gold Rises to Record as U.S. Economy Slowed in Fourth Quarter

Gold rose to a record high early on Thursday as the dollar weakened after a report showed the U.S. economy expanded at a slower than expected pace in the fourth quarter. Gold for April delivery was last seen up US$29.80 to US$2.823.30 per ounce, topping Friday's record close of US$2,806.60. In its initial estimate, the U.S. Bureau of Economic Analysis said gross domestic product rose by 2.3% in the fourth quarter, down from 3.1% in the prior quarter and under the consensus expectation for a rise of 2.5%, according to FactSet. Prices were also supported by the Federal Reserve's Wednesday decision to leave interest rates unchanged amid uncertainty over the impact of the Trump Administration's promised policies. "The focus remains on Trump's economic plans for tariffs and immigration, and how they might impact growth and inflation," Saxo Bank noted. The dollar weakened following the GDP data, with the ICE dollar index last seen down 0.28 to 107.73. Treasury yields also eased, with the U.S. two-year note last seen down 0.4 basis points to 4.218%, while the yield on the 10-year note was down 2.2 points to 4.522%