Renewed US Dollar buying weighs on Gold price

Growing acceptance that the Federal Reserve (Fed) will continue raising interest rates assists the US Dollar (USD) to catch fresh bids on Frida, which, in turn, is seen driving flows away from the US Dollar-denominated Gold price. In fact, the current market pricing indicates over an 80% chance of a 25 bps lift-off at the next Federal Open Market Committee (FOMC) in May and a small possibility of another rate hike in June. The bets were lifted by the overnight hawkish comments by Cleveland Fed President Loretta Mester, saying that the central bank still has more rate increases ahead of it.