Investing.com - Gold prices rose on Friday after bargain hunters snapped up nicely-priced positions in the yellow metal, erasing losses stemming from the Federal Reserve's Wednesday decision to trim its USD85 billion in monthly bond purchases by USD10 billion beginning in January.
Bond purchases seek to boost recovery by pushing down interest rates, weakening the dollar in the process and making gold an attractive hedge.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,204.30 during U.S. afternoon hours, up 0.90%.
Gold prices hit a session low of USD1,186.50 a troy ounce and high of USD1,206.80 a troy ounce.
Gold futures were likely to find support at USD1,180.35 a troy ounce, the low from June 28, and resistance at USD1,251.40, Monday's high.
The February contract settled down 3.35% at USD1,193.60 a troy ounce on Thursday.
Gold took a beating after the Fed on Wednesday announced that it would reduce its USD85 billion-a-month bond-buying program by USD10 billion in January.
Fed bond purchases, in effect for 15 months now, have supported gold by bolstering its image as a hedge to the dollar's weakening trend that comes with monetary intervention in the economy.
By Friday, investors sold the greenback for profits and bought gold at attractive prices
Gains were limited, however, after better-than-expected U.S. growth rates hit the wire and gave the dollar support.
The Commerce Department reported earlier that the U.S. gross domestic product expanded by 4.1% in the third quarter, well above consensus forecasts for 3.6% growth.
Elsewhere on the Comex, silver for March delivery was up 1.26% at USD19.428 a troy ounce, while copper for March delivery was up 0.37% and trading at USD3.308 a pound.
Bond purchases seek to boost recovery by pushing down interest rates, weakening the dollar in the process and making gold an attractive hedge.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,204.30 during U.S. afternoon hours, up 0.90%.
Gold prices hit a session low of USD1,186.50 a troy ounce and high of USD1,206.80 a troy ounce.
Gold futures were likely to find support at USD1,180.35 a troy ounce, the low from June 28, and resistance at USD1,251.40, Monday's high.
The February contract settled down 3.35% at USD1,193.60 a troy ounce on Thursday.
Gold took a beating after the Fed on Wednesday announced that it would reduce its USD85 billion-a-month bond-buying program by USD10 billion in January.
Fed bond purchases, in effect for 15 months now, have supported gold by bolstering its image as a hedge to the dollar's weakening trend that comes with monetary intervention in the economy.
By Friday, investors sold the greenback for profits and bought gold at attractive prices
Gains were limited, however, after better-than-expected U.S. growth rates hit the wire and gave the dollar support.
The Commerce Department reported earlier that the U.S. gross domestic product expanded by 4.1% in the third quarter, well above consensus forecasts for 3.6% growth.
Elsewhere on the Comex, silver for March delivery was up 1.26% at USD19.428 a troy ounce, while copper for March delivery was up 0.37% and trading at USD3.308 a pound.