Gold Tumbles as Stronger US Dollar and Inflation Concerns Weigh
Gold prices are down on Wednesday as expectations of further Federal Reserve rate hikes continue to lift the US Dollar, which has reached a two-month high. Despite lower oil prices following positive Middle East developments, inflation concerns remain elevated, keeping US Treasury yields in check.
The Fed raised rates by 25 basis points last week, citing the need to bring inflation back to its 2% target. Richmond Fed President Thomas Barkin recently stated that economic conditions are firming and warned of potential future inflation risks due to high current inflation levels.
Gold prices are currently trading around $4,315, down 1.0% on the day. The precious metal faces resistance at the lower Bollinger Band near $4,305, with initial resistance seen at $4,350.