Gold intraday gains challenge remarks by Fed

Gold is trading at $1629.30 per ounce at the time of writing versus Monday’s closing price of $1622.15. Gold price is relatively higher on the day as markets head into the close of Wall Street. The yellow metal gained ground on Tuesday as bulls moved in at the lowest levels in more than two years scored on the back of a surging US dollar and bond yields that are both making multi-year highs.

Up by 6.55%, gold managed to climbed from the earlierly recorded $1,621.91 low after falling a day earlier to the lowest since March 2020.

The gold price is trading below pandemic-era levels and as rates markets are now pricing the potential for higher interest rates to persist for some time, while a steady wave of statements and remarks by Fed officials that could boost the Fed’s hawkish stance.