Investing.com - Gold prices were slightly higher on Friday, but still remained near a six-week low as the greenback continued to rally from the Federal Reserve’s interest rate hike and strong economic data.
Comex gold futures for December delivery inched up 0.20% to $1,189.80 a troy ounce as of 9:22 AM ET (13:22 GMT), on track for a 1.7% loss for September.
Gold suffered after the Fed increased interest rates for the third time on Wednesday, which helped bolster the greenback. The precious metal is sensitive to higher rates because they push up bond yields, making bullion less attractive to buyers of other currencies.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, increased 0.29% to 94.88.
Gold usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
Meanwhile, consumer spending in the U.S. rose as expected in August, but was slightly lower than the prior month.
The Federal Reserve's preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, was unexpectedly flat in August after an increase of 0.2% in the prior month. Economists had predicted a 0.1% rise.
Other metals were higher on the Comex, with silver futures surging 1.89% to $14.555 a troy ounce. Among other precious metals, platinum futures rose 0.58% to $819.30, while palladium futures increased 1.05% to $1,071.20 an ounce. Copper futures gained 0.18% to $2.788 a pound.