Gold firms on weaker dollar, yet limited by Fed rate hike path

Gold rose on Friday as the dollar remained weak, though gains were limited by expectations of further interest rate hikes in the US. Despite this, traders still see a 74% chance of a July 2023 25-basis-point rate hike, according to CME’s FedWatch tool. Higher interest rates decrease the appeal of zero-yielding gold. Nevertheless, investors have been looking to buy gold on weakness. The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, saw outflows this week, attributed to gold’s being less exciting than stocks. Silver rose 1.4% to $24.20 per ounce and palladium fell 0.2% to $1,396.62.