Gold prices surged on Friday as alarming U.S. economic data reignited some interest in the safe-haven commodity, but it remained set to post its biggest monthly decrease since September due to expectations of the Federal Reserve raising interest rates aggressively.

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Gold was up 0.3% at $1,899.00 per ounce on the spot market but has lost around 2% so far this month. Gold futures in the United States were up 0.6% at $1,902.10.

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The disappointing U.S. GDP number could take some pressure off the Fed to tighten quite as aggressively as it has hinted, a rhetoric that has pressured gold in recent weeks, said Ilya Spivak, a currency strategist at DailyFX.

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“That has given gold a bit of a lifeline and knocked the dollar back just a bit. I don’t expect these moves to continue though,” Spivak added.

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Officials at the Federal Reserve have agreed to speed up interest rate rises this year, but they are divided on where to stop to prevent pushing the economy into recession.

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The opportunity cost of owning zero-yield bullion rises when short-term interest rates and bond yields rise in the United States.

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As the dollar and 10-year Treasury rates have gained this month, gold prices are on track for their worst monthly percentage loss since September 2021.

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For holders of other currencies, a higher dollar makes gold priced in greenbacks less appealing. The dollar has stabilised after reaching a 20-year high against competitor currencies in the previous session.

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Spot silver increased by 0.1% to $23.16 per ounce, while platinum fell by 0.5% to $915.19 and palladium increased by 0.5% to $2,243.74. All were set to fall on a monthly basis.