Gold prices moved higher on Friday, bouncing back strongly after falling to a six-week low in the previous session after the U.S. Federal Reserve hiked interest rate by 25 basis points and hinted at more tightening going ahead.
The dollar, which rose to a two-week high against major currencies earlier in the day, retreated and pared some gains subsequently. The dollar index, which rose to 94.98, dropped to around 94.60 before edging up to 94.72.
Gold futures for December ended up $8.80, or 0.70%, at $1,196.20 an ounce.
On Thursday, gold futures ended down $11.70, or 1%, at $1,187.40 an ounce, the lowest close since August 17.
Gold futures lost 0.4% for the week and shed about 0.9% in the month.
Silver futures for December settled at $14.712 an ounce, gaining $0.422 for the session.
Copper futures for December ended up $0.220, at $2.8050 per pound.
On Wednesday, the Federal Reserve’s monetary policy statement hinted at another interest rate hike in December and three more rate increases in 2019.
In economic news on Friday, the U.S. Commerce Department released a report that said personal income climbed by 0.3% in August, matching the increase seen in July. Economists had expected income to rise by 0.4%.
Meanwhile, personal spending rose by 0.3% in August after climbing by 0.4% in the previous month. Spending had been expected to increase by 0.3%.
A separate report from the University of Michigan showed consumer sentiment improved by slightly less than initially estimated in the month of September. The report said the consumer sentiment index for September was downwardly revised to 100.1 from the preliminary reading of 100.8. Economists had expected the index to be unrevised.
Despite the downward revision, the final reading for September still reflects a notable increase from the final August reading of 96.2.