Gold Takes a Hit Amid Hawkish Fed Outlook and Rising Bond Yields

Gold is struggling to regain its footing amid a hawkish US Federal Reserve outlook and deepening global bond rout. Despite a profit-taking bounce, the bullion remains below $4,300 and headed for its worst week in four weeks.

The US Dollar (USD) bulls have taken a breather after their recent run higher, allowing Gold some respite even as US Treasury bond yields remain elevated at multi-year highs.

However, expectations that major global central banks will maintain tighter monetary policies to combat inflation are exacerbating pain in bond markets worldwide and weighing on non-yielding assets like Gold.

The price of Gold is also being impacted by surging Oil prices-driven inflation fears, which are driving up US Treasury yields.