Investing.com - Gold rallied more than $20 on Friday, after data showed the U.S. economy grew less than expected in the fourth quarter.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery jumped $23.30, or 1.86%, to settle at $1,279.20 a troy ounce by close of trade on Friday.
Futures were likely to find support at $1,252.10, the low from January 29, and resistance at $1,300.20, the high from January 26.
The Commerce Department said in a report that the economy expanded 2.6% in the final three months of 2014, below expectations for a 3.0% gain and slowing sharply from growth of 5.0% in the three months to September.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ended at 95.00 by late-Friday, down 0.01% for the day and 0.33% lower on the week
Despite Friday's strong gains, gold lost $14.80, or 1.11%, on the week, the first weekly decline in a month.
On Thursday, gold plunged to $1,252.10, the lowest level since January 15, after the Federal Reserve upgraded its assessment of the economy and the labor market, leaving it on track to raise rates in the second half of this year.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
For the month, gold prices rose $94.20, or 7.96%, as investors sought safety from volatility in global financial markets.
Also on the Comex, silver futures for March delivery picked up 43.5 cents, or 2.59%, on Friday to settle the week at $17.20 a troy ounce by close of trade. On Thursday, silver sank $1.31, or 7.27%, to end at $16.77.
For the week, the March silver futures contract slumped $1.10, or 5.97%. Despite the weekly loss, silver tacked on $1.47, or 10.31%, in January.
In the week ahead, investors will be turning their attention to Friday’s U.S. nonfarm payrolls report for further indications on the strength of the recovery in the labor market.
Elsewhere in metals trading, copper for March delivery jumped 4.3 cents, or 1.75%, on Friday to settle the week at $2.494 a pound by close of trade.
On the week, Comex copper dipped 0.1 cents, or 0.32%, the fourth straight weekly decline.
The red metal lost 33.1 cents, or 11.72%, in January as concerns over the global economic outlook and the impact on future demand prospects dampened the appeal of the commodity.
In the week ahead, China is to release a report on the HSBC manufacturing index for February.
Official data released over the weekend showed that China's manufacturing purchasing managers' index slipped to a two-year low of 49.8 in January, below expectations for a reading of 50.2 and down from 50.1 in December.
The gauge contracted for the first time since September 2012, adding pressure on policymakers to stimulate a faltering economy.