Investing.com - Gold prices moved higher on Friday, as the U.S. dollar weakened broadly, although the Federal Reserve’s hawkish stance this week was expected to limit the precious metal’s gains.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 0.42% at $1,233.72.
The June contract ended Thursday’s session 1.59% lower at $1,228.60 an ounce.
Futures were likely to find support at $1,225.70, Thursday’s low and resistance at $1,257.80, Wednesday’s high.
Gold prices had tumbled after the Federal Reserve left interest rates unchanged on Wednesday, as expected, and gave a positive assessment of the U.S. economy, suggesting it was still on track for two more rate hikes this year.
The Fed said it expects the economy to rebound after hitting a soft patch in the first three months of the year, noting that the labor market looks solid and inflation is running close to its target, setting the stage for a rate hike next month.
But the precious metal benefited from a drop in the U.S. dollar on Thursday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 98.62 on Friday morning, close to Thursday’s six-month trough of 98.56.
A weaker U.S. dollar usually supports gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Market participants were now looking ahead to the U.S. nonfarm payrolls report due later Friday, for further indications on the strength of the job market.
Data on Thursday painted a mixed picture of the U.S. economy, as initial jobless claims fell more than expected last week while factory orders eased in March.
Elsewhere in metals trading, silver futures for May delivery jumped 1.01% to $16.467 a troy ounce, while copper futures for May delivery was little changed at $2.513 a pound.