Gold Prices Fall Amid Strong US PMI Data and Rate Hike Expectations

Gold prices fell 1.60% to $4,285 on Wednesday as strong US PMI data gave the Federal Reserve room to raise interest rates again.

The preliminary S&P Global Purchasing Managers' Index (PMI) release showed a composite reading of 58.4, beating expectations, while manufacturing and services PMIs rose to 57.0 and 58.7 respectively.

Richmond Fed President Thomas Barkin warned that economic conditions are firming, and high inflation risks affecting future inflation, reinforcing expectations of another rate hike this year.

The strong US Dollar and rising Treasury yields have left Gold vulnerable to further losses, with the price testing lower Bollinger Bands on its 4-hour chart.