Gold on track for best week since April as traders expect U.S. rates to peak

Gold was on track for its best week since April as investors stepped up bets that the Federal Reserve was approaching peak interest rates after key U.S. data showed slowing inflation.

Gold prices rose nearly 2% this week, buoyed by falling U.S. Treasury yields and a weaker dollar. Gold’s recent rally marks a reversal after it lost momentum in June, when successive reports suggested that price pressures remained elevated.

Still, U.S. core inflation remains above the central bank’s 2 percent target, with swap traders all but pricing in further policy tightening when the Fed meets in July.