Gold Struggles Amidst Rising Yields and Hawkish Fed Comments

Gold prices have struggled to gain traction this week amidst rising US Treasury bond yields and hawkish comments from Federal Reserve officials. On Wednesday, Fed Governor Michael Barr delivered a distinctly hawkish message, stating that 'further rate hikes are likely needed' to control inflation.

The 10-year US T-bond yield surged more than 3% on the same day, reaching its highest level since June 2007 at around 5.1%. Gold prices declined by over 1.5% on a daily basis and dipped below $4,300.

Philadelphia Fed President Anna Paulson reinforced the hawkish stance with her speech receiving an FXS Speechtracker score of 8.1/10, signaling a stronger tightening bias relative to the established baseline.