Gold Tumbles as Hawkish Fed and Rising Yields Deter Bullish Traders

Gold prices have been falling in recent days after last week's post-FOMC pop faded amid rising interest rate expectations, higher oil prices, and a strengthening US dollar.

The current macro backdrop makes it difficult to change the cautious gold forecast, especially with elevated oil prices and rising bond yields.

Yesterday saw the US dollar continue to press higher, supported by a slump in the bond markets as yields broke out across the curve, and some forecast-beating US macro data and hawkish Fed commentary.

The greenback's safe-haven appeal is likely to stay supported, especially if we see a deeper sell-off in equity markets.