Gold rebounded from three-week lows on Friday, helped by a drop in the dollar following better-than-expected Chinese data and a stronger euro, as traders focused on the Federal Reserve’s interest rate outlook next week.
Spot gold was up 0.4% to $1,917.49 per ounce, having dropped to its lowest level since August 23 the previous day. Gold futures in the United States rose 0.3% to $1,939.
The dollar fell 0.2% versus its competitors after reaching a six-month high on Thursday, making gold less costly for holders of other currencies.
Data revealed that China’s manufacturing output and retail sales expanded quicker in August, increasing recovery prospects in the world’s largest bullion consumer.
The focus of investors has switched to the United States’ central bank meeting next week, when the Fed is largely anticipated to keep interest rates steady.
Data released on Thursday indicated that producer prices in the United States grew by the greatest amount in more than a year in August, while retail sales were also above forecasts, buoyed by a rise in gasoline prices.
