Gold Price Stuck Below $4,300 as Hawkish Fed View Weighs on Precious Metals

The gold price is struggling to break above $4,300 as the broader bearish trend in the market remains intact. The Federal Reserve's hawkish view and rising US Treasury yields are weighing heavily on precious metals.

Fed speakers, including Philadelphia Fed President Anna Paulson and New York Fed President John Williams, have reinforced the expectation of further rate hikes this year. Williams stated that 'it is reasonable to see another US rate hike this year.' Meanwhile, US Treasury yields remain at high levels, with the 10- and 30-year notes paying above 5%, at 19- and 22-year highs respectively.

According to OCBC strategists, oil prices and interest rates are the key swing factors for gold in the near term. They suggest that some easing in energy prices or a weaker US dollar could help stabilize gold, while a further rise in yields would keep pressure on the metal's price.