Investing.com - Gold rose to a nearly one-month high Friday, shrugging off a rise in the dollar to a four-day high, following an upward revision to U.S. economic growth.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange rose $11.07 or 0.88%, to $1,267.49 a troy ounce by 13:36 EDT.
Gold futures remained on track to end the week in positive, despite a rise in investor expectations the Federal Reserve would hike its benchmark rate in June in the wake of an upward revision to U.S. economic growth.
The U.S. economy grew faster than initially reported during the first three months of 2017, easing concerns about a potential slowdown in the U.S. economy.
Gross domestic product grew at an annualized rate of 1.2% in the first three months of 2017, according to the Bureau of Economic Analysis’s, well above the previous reading of 0.7%, which was the slowest period of economic growth since 2014.
The dollar leaped to a four-day high, and pressured commodity prices across the broad, as expectations for a June rate hike rose to its highest level this week .
According to investing.com’s Fed rate monitor tool more than 80% of traders expect the Federal Reserve to hike its benchmark rate in June, compared to below 70% of traders in the previous week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.20% to 97.34.
Gold is sensitive to moves higher in both U.S. rates and the dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.
Silver futures rose 0.90% to $11.25 a troy ounce while platinum futures gained 0.93% to trade at $961.75.
Copper fell 1.14% to $2.568, while natural gas rose by 0.76% to $3.30.