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Analysts forecast CAD to widen to 3.3% of GDP in FY23 from 1.2% in FY22
Analysts from top international brokerages expect margin contraction in Q1FY23 from rising employee costs
Gross domestic product probably rose at a 0.7 percent annual rate after a 1.4 percent pace in the fourth quarter, according to a Reuters survey, also as businesses stepped up efforts to reduce unwanted merchandise clogging up their warehouses.
Gross domestic product expanded at an only 0.2 percent annual rate, the Commerce Department said on Wednesday. That was a big step down from the fourth quarter's 2.2 percent pace and marked the weakest reading in a year.
Spot gold had eased 0.2 percent to USD 1,192.25 an ounce as of 0046 GMT, largely retaining Friday's 1.8 percent gain. The metal rose to a peak of USD 1,199 on Friday, its highest since Dec. 22 and its biggest one day jump in 2-1/2 weeks.
The initial reaction on oil markets was largely muted after data on Monday showed the Chinese economy eased to 7.7 percent between October and December, from 7.8 percent in the previous three months and slightly ahead of market expectations for growth of 7.6 percent.
Gold fell more than 1 percent on Tuesday as a stronger dollar put pressure on prices and as the outflow from the world's biggest gold exchange-traded fund (ETF) accelerated and accentuated an investor shift towards equities and other assets.
Gold today swung between gains and losses, after its worst run of weekly losses since 2004, as a stronger dollar curbed demand for the metal as an alternative investment.
In years past, gold often acted as a safe haven when stocks were falling, and it hit a record in August while equities struggled. Now, however, it's mired in its worst selloff in decades.
Kirk West, managing director Asia, Principal Global Investors, Investment Strategy says that the impact of Bernake’s comments will be good for equities. “Conditions will be good for growth assets, however, we are expecting further weakness in the dollar index,” he says
Federal Reserve Chairman Ben Bernanke on Wednesday said the US central bank could best ensure a strong dollar by creating the conditions for strong economic fundamentals.
