Gold is set for its biggest weekly loss since February 2023 due to the progress made on the resolution of the US debt ceiling crisis. US House Speaker Kevin McCarthy has said that negotiators on the federal debt limit may reach an agreement in principle as soon as this weekend. The easing of concerns over a potential debt default has boosted the dollar index and treasury yields, further weighing down gold prices. However, the recent hawkish comments from US Federal Reserve officials do not mean a rate hike during the June meeting and the majority of Fed officials are taking a "wait and watch" approach.