Gold price advances during the North American session on Friday as the US Dollar weakens, with traders booking profits ahead of the weekend. Additionally, a Fed Governor's comments turned more dovish than expected, supporting a rate cut in July. At the time of writing, the XAU/USD trades at $3,353, up 0.43%.

The market mood is upbeat after the University of Michigan (UoM) revealed that Americans have become optimistic about the economy and expect inflation to edge lower. Recently, Fed Governor Christopher Waller suggested that the central bank should cut interest rates at the upcoming monetary policy meeting, triggering a decline in US Treasury yields, a tailwind for the Gold market.

The US Dollar Index (DXY), which tracks the buck's value against a basket of six currencies, tumbles 0.13% to 98.48. A weaker US Dollar favors the precious metal denominated in that currency, making Gold prices cheaper for foreign buyers.

Following Waller's comments, traders priced in 45 basis points (bps) of easing toward the end of the year, up from 42 bps a day ago, according to the December 2025 fed funds rate futures contract.

Bullion failed to reach the weekly high hit on Wednesday, following rumors that US President Donald Trump was considering the removal of Fed Chair Jerome Powell. Later, he denied those comments, though he continued to exert pressure on the central bank.

Next week, the US economic docket will feature housing data, S&P Global Flash PMIs, jobless claims and Durable Goods Orders.

Source: Fxstreet