Gold Set for Weekly Gain on Fed Rate Pause Expectations

Gold prices eased on Friday due to a stronger dollar, but are set for a weekly gain on bets that the Federal Reserve may pause interest rate hikes. The market is still looking for a hedge against an economic slowdown, providing some underlying support to gold. The focus now shifts to the US consumer inflation report for May, due on June 13, a day before the Fed announces its policy decision. Markets are pricing in a 74% chance of the Fed standing pat next week, after having raised rates at every meeting since March 2022.