Expectation of interest rate path in gold

Gold traded sideways as investors assessed what comments from Fed officials meant for the interest rate hike path that directly affects the price of the precious metal. While attention turned to messages from Fed officials, investors observed a cautious pricing behavior. Gold settled at $1,770 per ounce in the spot market. The precious metal, which has no interest yield and has traditionally been negatively correlated with the dollar and interest rates, had been under pressure this year with the aggressive interest rate hikes made by the Fed. Investors have recently been trying to see clues that the Fed will make smaller increases in its interest rate hike decisions. This situation is expected to support gold. The precious metal had increased by 1 percent after Fed Vice Chair Lael Brainard's statements that it would be appropriate for the Fed to slow down monetary tightening soon. Oanda Market Strategist Ed Moya said, “The Fed remains the main driver for gold prices and we may hear strong statements against hawkish policies from Fed officials this week.”