Fed officials' hawkish remarks reinforce tightening expectations, gold price pulls back

Odaily News: Gold prices drifted lower within a rangebound trading pattern, as a stronger dollar and hawkish remarks from Federal Reserve officials further reinforced market expectations of monetary policy tightening. The dollar rose to a two-month high, making dollar-denominated gold more expensive for investors holding other currencies.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, said: "Gold continues to trade within the established narrow range of $4,300 to $4,400. Fed officials' remarks and their impact on U.S. interest rates, bond yields, and the dollar, along with oil price movements, are collectively providing the main directional cues for short-term traders." Richmond Fed President Barkin said on Tuesday that interest rate hikes and the threat of further increases could dampen businesses' inflation expectations and cool price increases without actually weighing on economic activity.