Gold up on weaker-than-expected U.S. data, dollar

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday as weaker-than-expected U.S. data and a weaker U.S. dollar gave support to the precious metal.

The most active gold contract for December delivery rose 16.3 U.S. dollars, or 1.22 percent, to settle at 1,357.50 dollars per ounce.

The precious metal was given extensive support as a report released by the U.S. Department of Commerce showed that the U.S. gross domestic product growth (GDP) grew 1.2 percent during the second quarter of the year.

Analysts note that the market expected a 2.6 percent increase and the worse-than-expected report signals unexpected weakness in the U.S. economy.

The U.S. central bank has left the door open for a rate increase during 2016, but given the Q2 GDP numbers, traders believe that is unlikely.

Previous Fed minutes led traders to believe that the Fed may raise rates from 0.50 to 0.75 during the December FOMC meeting. According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to 0.75 is at 12 percent at the September 2016 meeting, 14 percent at the November 2016 meeting, and 34 percent at the December meeting.

The U.S. Dollar Index fell by 1.09 percent to 95.61 as of 18:30 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions.

Silver for September delivery added 15.5 cents, or 0.77 percent, to close at 20.347 dollars per ounce. Platinum for October delivery rose 11.7 dollars, or 1.03 percent, to close at 1,150.60 dollars per ounce. Endit