Investing.com - Gold prices bounced off the previous session's ten-month lows on Friday, but gains were expected to remain limited as the Federal Reserve's decision to raise interest rates this week continued to lend broad support to the U.S. dollar.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.56% at $1,136.15, off Thursday's 10-month trough of $1,123.90.
The February contract ended Thursday's session 2.91% lower at $1,129.80 an ounce.
Futures were likely to find support at $1,123.90, Thursday's low and resistance at $1,164.00, Wednesday's high.
The greenback found broad support after the Fed concluded its policy meeting on Wednesday by raising interest rates by 25 basis points and projected three more rate hikes for 2017.
The dollar was also boosted after the U.S. Labor Department reported on Thursday that initial jobless claims fell to 254,000 last week.
A separate report showed that the U.S. consumer price index rose 0.2% last month, in line with expectations. Year-on-year, consumer prices increased by 1.7%.
In addition, the Philly Fed manufacturing index climbed to a two-year high of 21.5 this month from 7.6 in November, blowing past expectations for a reading of 9.0.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.21% at 102.93, still close to the previous session's 14-year high of 103.56.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere in metals trading, silver futures for March delivery jumped 1.22% to $16.152 a troy ounce, while copper futures for March delivery dropped 0.56% to $2.586 a pound.