Gold and copper prices increased in Asian trade on Friday due to investors betting on the Federal Reserve’s ability to hold rates despite rising inflation.

The dollar rallied to six-month highs on Thursday, limiting gold’s gains.

Spot gold jumped 0.3% to $1,916.80, while December gold futures rose 0.3% to $1,938.35.

The Fed is expected to hold rates next week, but investors are uncertain about its outlook due to recent inflation spikes.

Rising interest rates raise the opportunity cost of investing in non-yielding assets, hurting gold.

China’s optimism and stimulus efforts boosted copper prices to a 10-day high, with copper prices rising 0.8% to $3.8492 a pound.