Gold Prices Slide on Rate Hike Expectations Amid Energy Price Surge

Gold prices have taken a hit this week due to increased expectations of further interest rate hikes by the Federal Reserve. The Fed's decision to tighten monetary policy has been fueled by high energy prices, which are driving inflation concerns and bond yields higher.

The precious metal is currently trading at $4,281.05 an ounce, down 2.4% for the week. Despite near-term headwinds, many investors still believe gold will grind higher as it recovers its traditional value as a portfolio hedge.

Analyst Christopher Wong of Oversea-Chinese Banking Corp noted that the current 'difficult backdrop' for gold is due to higher yields and stronger oil prices. He added that there needs to be a fresh catalyst before the next meaningful leg higher in gold prices.