Attention turns to the Fed

Gold rose after investors expected the Fed to pause interest rate hikes after US inflation data indicated a cooling trend. Gold rose after three days of declines, supported by a slight decline in bond yields ahead of a possible pause in the Fed's aggressive monetary tightening cycle. Spot gold is trading at around $1,946 per ounce. According to calculations made on the basis of ounce gold and the interbank Dollar/TL exchange rate, gram gold is finding buyers at TL1,480. Quarter gold is being sold for TL2,430, while Republic gold is being sold for TL9,840. Following the annual slowdown observed in US inflation data on Tuesday, short-term bond yields rose to their highest levels since March, and this situation is considered to have a negative impact on the precious metal, which does not yield interest. Gold has lost more than 5 percent since its peak in early May. The inflation data was seen by investors as confirmation that the Fed will keep interest rates between 5-5.25 percent on Wednesday. Swap traders set the probability of a rate hike at only 10 percent, while still seeing a hike in July as possible.