The precious metal gold fell below the $2,000 price level as the US dollar traded and the US 10-year treasury yield was stronger.
In the Asian session, spot gold was little changed at around $1,992 per ounce, while gold futures traded at $1,996 per ounce.
The US dollar strengthened again, as the 10-year US bond yield surged to a two-week high of 3.57%.
This has stressed the gold yellow metal to drop lower, especially after hearing the hawkish statements of the Federal Reserve (Fed) policymakers.
Cleveland Fed President Loretta Mester said she does not think interest rate hikes need to be stopped yet. Still, there are four weeks until the next meeting, so the Fed will need to see more data.
In addition, the President of the Atlanta Fed, Raphael Bostic said the central bank needs to remain very strong in the fight against inflation even though the unemployment rate starts to rise later this year.
Investors now place expectations for an 85% chance that the Fed will keep rates unchanged in June, according to CME's FedWatch tool.
Meanwhile, talks on the debt ceiling ended on a hopeful note after Republican House Speaker Kevin McCarthy said there was a chance a deal could be reached later this week.
