Gold is holding near a five-week high on Friday and is targeting a third consecutive week of gains. Two days ago, we suggested that factors leading to a weaker US dollar could trigger a rise in gold prices. US inflation data released earlier reinforced expectations that the Federal Reserve may continue to cut interest rates this year. The weakening of the U.S. currency led to a rise in gold quotations to $2725. In the zone of this mark, technically, resistance is possible.

Additional Considerations

Additionally, it is worth paying attention to yesterday's statement by Fed Governor Christopher Waller, in which he noted that inflation is likely to continue to slow, which may allow the Federal Reserve to cut rates faster than expected.