Gold futures rose modestly Friday, as a government report showed a slower pace of economic growth for the U.S. and as
red bottom fishers sought the precious metal at recently lowered prices.
Copper stole the show, however, ending 12% higher for the month as concerns about a slowdown in the global recovery abated, pushing the red metal to its best month since April 2009. Gold lost 5% in July, its worst month since December.
Gold for December delivery, the most actively traded contract, added $12.70, or 1.1%, to $1,183.90 an ounce on the Comex division of the New York Mercantile Exchange. The front-month, thinly traded August contract also gained, up $13.30, or 1.1%, to $1,181.70 an ounce. The SPDR Gold Trust (GLD 115.49, +1.20, +1.05%) rose 1.1%.
Copper for September delivery added 2 cents, or 0.7%, to $3.31 a pound. September silver rose 39 cents, or 2.2%, to $18 an ounce.
Gold's wobbly run in July gave way to bargain hunters on Friday, said George Gero, vice president at RBC Capital Markets. Prospects that China's economic growth could bolster global inflation also pushed investors to snap up the metal, he added.
Copper was the biggest beneficiary of a more optimistic view about global growth, Friday's U.S. gross domestic notwithstanding.
Data showed the U.S. economy cooled in the second quarter, growing at a 2.4% annualized rate -- well below the average 4.4% increase over the last six months, and slightly less than the 2.5% quarter-to-quarter pace that had been forecast in survey by MarketWatch. Read more about the GDP report here.
