Fed Hawkishness Weighs on Gold Despite US Dollar Pause

Gold prices have rebounded slightly from their one-week low as the US Dollar and Treasury yields ease.

The precious metal is still on track for a weekly loss, however, due to growing expectations that the Federal Reserve may raise interest rates again.

New York Fed President John Williams said 'We need to get inflation back to target in a timely manner,' while Richmond Fed President Tom Barkin noted that 'inflation pressures are spreading beyond energy and tariff-related shocks.'

The CME FedWatch Tool now shows around a 71% probability of a hike at the October meeting, driving up the US Dollar and Treasury yields.