Silver on track for bet week since early April
Markets see 72 chance of Fed standing pat next week
Palladium plunges to lowest in four years

June 9 Reuters Gold eased on Friday on a stronger dollar and higher yields, but was set for its best week since early May after weaker jobs data bolstered bets for the Federal Reserve to hold pat on interest rates next week.

Spot gold fell 0.1 to 1,966.09 per ounce by 1023 a.m. EDT 1423 GMT. But it is headed for a nearly 1 weekly climb, helped by a 1.5 jump on Thursday after a surge in U.S. weekly jobless claims.

U.S. gold futures rose 0.1 to 1,981.00.

Gold is oscillating in a 1,9401,990 range and is likely to remain so until inflation data and the Fed result next week, said Tai Wong, a New Yorkbased independent metals trader, adding bullion remains more sensitive to weak or dovish economic data.

The dollar index bounced off twoweek lows, making gold expensive for overseas buyers, while higher 10year Treasury yields made zeroyield bullion less attractive.

Markets now priced in a 72 chance of the Fed standing pat next week, but odds of a hike in July were 67, the CME Fedwatch tool showed.

Traders braced for the U.S. inflation report for May due on Tuesday, a day before the Fed announces its policy decision.

China raised its gold reserves for a seventh straight month to 67.27 million fine troy ounces by Mayend.

Standard Chartered analyst Suki Cooper noted a sharp increase in the number of central banks looking to add gold…