Gold prices head for a weekly gain amid expectations keeping ‎rate unchanged ‎

Gold prices fell today, Friday, after rising by more than 1% in the previous session, but hopes that the US Federal Reserve will not raise interest rates made the yellow metal heading for weekly gains.

By 03:04 GMT, gold fell in spot transactions by 0.2% to $ 1964.79 an ounce, but it is heading to record a weekly rise of 0.9%. And US gold futures settled at $ 1979.80.

Tim Waterer, senior market analyst at KCM Trade, said that the number of Americans who filed new applications for unemployment benefits supported expectations that the US Federal Reserve will pause interest rate hikes in June, and the resulting decline in Treasury yields allowed The high price of gold.

He added that a slight decline is normal after the rise in light of some profit-taking operations

The dollar index hovered near the lows it reached in the previous session. A weaker dollar makes gold less expensive for buyers abroad

All eyes now turn to the US consumer price inflation report for May, due for release on June 13 before the Fed meeting, which will provide investors with greater clarity on the strength of the world’s largest economy.

Yesterday, the International Monetary Fund urged the US Federal Reserve and other global central banks to “stay the course” with regard to monetary policy and remain vigilant in the fight against inflation.

Raising interest rates leads to an increase in the opportunity cost of possessing gold that does not yield a return.

As for other precious metals, silver rose in spot transactions by 0.4% to $24.3387, and palladium increased by 0.3% to $1365.39.