• Gold price hits a fresh two-month low amid bets that the Fed will keep rates higher for longer.
• The expectations were reaffirmed by the stronger-than-expected US CPI released on Tuesday.
• A softer risk tone could lend support to the safe-haven XAU/USD and help limit further losses.

Gold price (XAU/USD) remains depressed below the $2,000 psychological mark and touches a fresh two-month low during the Asian session on Wednesday. A stronger-than-expected US inflation report released on Tuesday fueled speculations that the Federal Reserve (Fed) will wait until its June policy meeting before cutting interest rates and is seen as a key factor weighing on the non-yielding bullion. Meanwhile, hawkish Fed expectations remain supportive of elevated US Treasury bond yields and assist the US Dollar (USD) to preserve the overnight strong gains to its highest level since November 14, which further seems to undermine the commodity.

That said, the risk-off mood – as depicted by a slump across the global equity markets – helps the safe-haven Gold price to find some support near the 100-day Simple Moving Average (SMA). Any meaningful recovery, however, still seems elusive amid growing acceptance that the Fed will keep interest rates higher for longer in the wake of a still resilient US economy and sticky inflation. Moving ahead, there isn't any relevant market-moving economic data due for release from the US on Wednesday, leaving the precious metal at the mercy of the USD and the broader risk sentiment. The fundamental backdrop, meanwhile, seems tilted in favour of bearish traders