Spot gold rose 0.1% to $1,930.48 an ounce by 1255 GMT, after falling nearly 1% in the previous session following US data, Reuters reported.
US gold futures settled at $1,930.20.
Michael Hewson, chief market analyst at CMC Markets, said the US GDP figures “raise speculation that although inflation is starting to look more moderate, it’s possible the Fed will have to keep rates higher for a while longer,” which prompts speculation. Click on gold.
Data on Thursday showed that the US economy grew faster than expected, but most economists expect a recession by the second half of the year, although it will be short and moderate compared to previous recessions due to the unusual strength of the labor market.
Investors are closely watching the central bank’s two-day monetary policy meeting next week, with a 25 basis point rate hike widely expected.
Gold, which does not pay interest, tends to benefit when interest rates are low because it reduces the opportunity cost of holding bullion.
Robert Rowling, an analyst at Kinesis Money, said in a note.
US Personal Consumption Expenditure (PCE) data due at 1330 GMT is also on the radar.
Spot silver fell 0.8% to $23.7063 an ounce, and platinum fell 0.9% to $1009.41.
Palladium fell 0.2% to $1,673.97.