Gold prices rose on Friday as economic data from the US increased the appeal of the yellow metal. However, gains were capped by a firm dollar.

The American economy unexpectedly shrank in the first quarter of 2022, data from the Bureau of Economic Analysis showed Thursday. Meanwhile, US dollar traded at two-decade highs.

Despite today’s gains, safe-haven bullion was headed to log its biggest monthly drop since September amid bets on aggressive interest rate hikes by the Federal Reserve.

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