Rising bets for additional rate hikes by Federal Reserve could cap gains

In fact, the current market pricing indicates a greater chance of another 25 basis points (bps) lift-off at the next  Federal Open Market Committee (FOMC) monetary policy meeting in May. The bets were lifted by the mostly upbeat US monthly employment details, popularly known as the Nonfarm Payrolls (NFP) report, released last Friday. This, for now, seems to have put a floor under the US Treasury bond yields, which should act as a tailwind for the Greenback and cap any further gains for the non-yielding Gold price.