2021.06.1810:43:00UTC+00Gold Rebounds But Set For Weekly Loss

Gold prices rose more than 1 percent on Friday as the dollar rally paused and benchmark Treasury yields slid below 1.5 percent to reach levels seen going into the Fed meeting earlier in the week.

Spot gold climbed 1.1 percent to $1,792.55 per ounce, but was down more than 4 percent for the week, putting it on course for its worst week in nearly nine months. U.S. gold futures were up a little over 1 percent at $1,793.25.

Gold prices are moving higher on short covering after the recent sell-off. Any uptick in gold is expected to be temporary, thanks to the Federal Reserve's hawkish economic forecasts.

With the upside risks to inflation starting to pick up, Fed officials signaled on Wednesday that they expect two increases by the end of 2023.

After an impressive rally overnight, the dollar remains on course for its best week in nearly nine months.