Gold is advancing to its best weekly close since April, with expectations that the Fed will soon stop interest rate hikes after lower-than-expected inflation in the US.
Gold is poised for its best weekly close since April as investors strengthen the Fed’s pricing for peak interest rates after key US data pointed to a slowdown in inflation.
Spot gold is trading at $1,956 an ounce.
Spot gold rallied almost 2 percent this week, bolstered by the weakening dollar and falling bond yields, as some market players warned of disinflation probabilities, following below-expected US CPI data.
The precious metal’s recent rally marks a turning point after losing momentum in mid-June with successive reports suggesting inflationary pressures remain high.
However, as core US inflation remains above the Fed’s 2 percent target, swap investors have almost completely priced in a rate hike by the Federal Reserve at its July meeting.