Gold is recovering from its lowest level in 5 months

Gold rose from its lowest level in five months on Friday, as the dollar and bond yields fell, but the yellow metal is heading for another weekly decline, as encouraging data from the United States reinforced expectations that the Federal Reserve is not finished raising interest rates.

Spot gold rose 0.2 percent to $1,892.30 an ounce by 0745 GMT, after touching its lowest level since mid-March on Thursday. US gold futures rose 0.4 percent to $1,922.90.

“The dollar has pulled back from its recent gains, which has allowed gold to move slightly higher,” said Tim Waterer, senior market analyst at KCM Trade.

The US benchmark 10-year Treasury bond yields also fell from their highest levels since October.

Investors are now awaiting the meeting of central bank governors in Jackson Hole, Wyoming, USA, next week, to get clues about interest rates.

For other precious metals, spot silver rose 0.4 percent to $22.78.

Platinum rose 0.6% to $894.72, and palladium rose 0.4% to $1,221.48, but the two metals are heading for a weekly decline.