Gold Price Volatility Persists Amid Hawkish Fed and Middle East Tensions

The gold price remains volatile as investors weigh the implications of the Federal Reserve's hawkish stance and escalating tensions in the Middle East.

Despite a modest uptick in Asian trading hours, the precious metal struggled to gain traction, hovering below its weekly high amid mixed cues.

The recent retreat in US bond yields has kept the dollar on the back foot and lent support to gold, but the Fed's hawkish outlook continues to limit losses for the greenback.

UOB Group analysts expect two further interest rate hikes this year, which could widen the US rate gap and underpin the dollar going forward.