Gold rises from five-month low as dollar, stock retreat

Gold rose from its lowest level in five months on Friday as the retreat in the U.S. dollar and global stocks eased some pressure off bullion.

The precious metal hit a high of $1057.88 an ounce, while currently trading around 1056.27, compared to the session’s opening at $1050.86.

The U.S. dollar retreated slightly against a basket of major currencies to 99.00, after marking a high of 99.33 on Thursday, according to the dollar index.

On the weekly basis, gold is set for its second straight loss after the Federal Reserve decided to raise its borrowing cost for the first time in nearly a decade.

While the decision was widely predicted, it helped the U.S. dollar to rise, where it will probably lock its first weekly advance in three this week.

Some analysts believe that gold prices will tumble to $1000 an ounce, and then will start rebounding from this point.

European shares dropped today, following robust gains on Thursday as the Fed’s decision was interpreted as confidence in the strength of the U.S. economy.

FTSEurofirst 300 Index gas dropped 0.23 percent to 1,431.11 points.

Brent crude extended its losses for a third consecutive session to hover around $38.80 a barrel, amid persisting oversupply worries.