Gold futures extended gains Friday after a report showing weaker-than-expected U.S. economic growth, putting the yellow metal on track for its biggest monthly gain since July 2013.
Gold futures for February delivery rose $9.40, or 0.7%, to $1,264 U.S. an ounce, recovering some of Thursday’s drop, while March silver futures gained around 16 cents, or 1%, to $16.94 U.S. an ounce.
Gold futures extended gains after the U.S. Commerce Department said fourth-quarter gross domestic product expanded at a 2.6% annualized pace, versus expectations for 3.2% growth.
Gold has gained ground this month as investors sought havens in the wake of turmoil and increased volatility created by plunging oil prices and the Swiss central bank’s decision to abandon a cap on the value of its currency versus the euro.
On Thursday, gold dropped 2.4% in its biggest one-day decline in 13 months as investors booked profits on reaffirmed expectations for a midyear rate hike by the Federal Reserve and upbeat economic data.
With Friday’s early rebound, however, gold is up around 6.8% for January, which would be its biggest monthly rise since a 7.3% gain in July 2013, according to FactSet.
