26.06.202613:05:31UTC+00Gold Down for 4th Week

Gold traded near $4,040 per ounce on Friday, edging higher for a second straight session after the latest US PCE inflation report came in broadly in line with expectations. The data prompted investors to slightly scale back their projections for Federal Reserve rate hikes this year.

Even with the modest rebound, gold is still down about 3% for the week, marking a fourth consecutive weekly loss, as the Fed’s hawkish stance continued to underpin the US dollar.

At the same time, new Fed Chair Warsh reaffirmed the central bank’s commitment to taming inflation, easing concerns that he might bow to pressure from US President Trump to cut interest rates prematurely. The Fed also raised its 2026 PCE inflation forecasts. The headline PCE inflation rate accelerated to 4.1% in May.

Markets are currently pricing in three Fed rate hikes this year, with the probability of the first increase in September at around 62%.