US Dollar Surge Weighs on Gold as Fed Rate Hike Bets Intensify

Gold prices fell on Wednesday as investors bet on further interest rate hikes by the Federal Reserve (Fed), lifting the US Dollar to a two-month high.

The US Dollar Index (DXY) climbed to 100.85, its highest level since August, despite a drop in oil prices following positive developments in the Middle East.

Gold prices have been struggling as inflation concerns keep US Treasury yields elevated, with the two-year yield around 4.77%, near levels last seen in 2024.

The combination of a strong US Dollar and expectations of higher borrowing costs leaves gold vulnerable to further losses, technical analysis suggests.