Gold slipped to its weakest level in three weeks after Federal Reserve (Fed) policymakers reaffirmed their commitment to more interest rate hikes to come.
The Asian market session saw the yellow metal trade lower at $1,625 an ounce, not far from the two-and-a-half-year low it touched last month.
Minneapolis Fed President Neel Kashkari said the Fed may not stop tightening even if its benchmark reaches 4.5% to 4.75% if inflation remains high.
Additionally, St Louis Fed President James Bullar signaled two more interest rate hikes of 75 basis points at their next policy meeting.
This in turn helped support the US dollar to return to strength and the US 10-year bond yield rose further to a new 14-year high.
Stubbornly high inflation has reignited fears of a recession as most global central banks seek to lower it regardless of the negative impact on the economy.
Continued price pressures indicate that aggressive monetary policy tightening will continue.
