Gold advances on dollar slide, but sets monthly loss

Gold prices gained on Friday, supported by a retreat in the dollar, but the precious metal was headed for a monthly drop on expected aggressive interest rate hikes by the U.S. Federal Reserve.

Spot gold soared 0.6% to $1,905.67 per ounce by 0546 GMT. But prices have lost about 1.6% so far this month.

U.S. gold futures gained 0.9% to $1,908.10 per ounce.

The dollar index dropped 0.6% after touching a 20-year high on Thursday.

It should be noted that the Fed will discuss next week an interest rate hike of 50pbs to curb higher inflation in the USA.