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Gold prices are little changed to yesterday’s session as the market is pressured by hawkish US Federal Reserve comments which suggest more rate hikes.

• St. Louis Fed President James Bullard mentioned that the policy rate is not sufficiently restrictive.
• A federal funds rate of 5% to 7% is suggested to fight inflationary pressure, higher than most market participants expected.
• More policymakers suggested that pause is off the table and needs to be careful to stop too soon of hiking rates.
• Gold is considered as a hedge against inflation while higher interest rates make Gold costly to hold as a non-yielding asset.

The daily interval rose towards the Year’s developing VWAP while the market fell for two days in a row as possible long liquidations with the mentioned hawkish comments pressure the market.

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The hourly interval signals some selling around the swing highs with selling tails, targeting the lows of the prior session to migrate toward possible inventory which eventually drags the market to lower prices. The market is hitting possible short covering around the hourly swing lows currently. The volatility is negative for the bullion and the dollar index is about to rise which may pressure the price of gold.

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