Gold edged lower on Friday having gained in the previous five sessions as growing expectations of a pause in U.S. interest rate hikes set bullion on course for its biggest weekly gain since April.
Spot gold fell 0.2% to $1,955.90 U.S. per ounce by 0952 GMT, but has gained 1.6% so far this week and earlier hit its highest since June 16. U.S. gold futures eased 0.2% to $1,960.50.
Benchmark U.S. Treasury yields edged up from their two-week low on Thursday, making non-yielding bullion less attractive to investors.
Fed Governor Christopher Waller on Thursday said he was not ready to call an all-clear on inflation and favored more rate hikes this year – a sentiment reflected in June’s FOMC minutes.
The markets, however, anticipate one 25 bps rate hike at the Fed’s July 25-26 meeting for this year.
Higher interest rates increase the opportunity cost of holding non-yielding bullion.