Gold's Fate Uncertain as Dollar's Strength and Fed's Rate Expectations Diverge.

The gold market ended the week lower due to a rise in the US dollar, which took away some of gold's appeal. There is a divergence in Federal Reserve interest rate expectations, with some Fed officials calling for more rate hikes while the Fed signals a pause in June. The conflicting narrative is making it hard for markets to feel confident that the Fed is done raising rates. The recent macro data points to stubborn inflation, with the headline annual number falling below 5% in April, but the Fed's preferred core figure still at 5.5%. Analysts are watching next week's macro data, such as retail sales, the debt ceiling debate, and the banking sector contagion risks.