Gold may come under pressure next week; crucial support at $2000

Gold closed the week with a minor loss, while investors seek signs of pause in the US Federal Reserve’s rate hike cycle. The US CPI rose 4.9% YoY in April compared to forecasted 5%, while core inflation levels at 5.5% on a YoY basis are significantly above the Fed’s intended target of 2%. The results indicate sticky elevated inflation, while the US weekly jobless claims are at their highest level in 1.5 years. With the odds of the Federal Reserve hiking its rates in June 2021 rising to 10%, gold may lose some support amid rising yields and a stronger dollar.