Gold Price Struggles as Strong USD and Higher Interest Rates Bite

The gold price has struggled to hold above its 20-day exponential moving average (EMA), trading at around $4,349.73. This bearish near-term bias is due to selling pressure above the EMA, which is roughly at $4,366.80.

The US Dollar remains firm amid expectations of another interest rate hike by the Federal Reserve this year. The USD Index has reached its over 50-day high of 100.56 and is close to the current level of 100.30.

According to economists at NBC Economics and Strategy, the Fed's updated dot plot points to 'relatively broad support for more restrictive monetary policy for a significant period of time.' This suggests that interest rates will remain higher for longer, which bodes poorly for non-yielding assets like gold.