Ella 
In early Asian trading on Tuesday, gold prices remained weak at around $1,915. A rebound in the U.S. dollar (USD) and rising U.S. bond yields weighed on gold prices.
Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of currencies, is hovering around 105.95 after retreating from its highest level since November of 106.09 amid talk that the U.S. will maintain more level interest rates for longer. In addition, the 10-year U.S. Treasury yield climbed to 4.53%, the highest level since October 2007.
Most Fed officials still expect further rate hikes later this year. Boston and San Francisco Fed Presidents Susan Collins and Mary Daly stressed that although inflation is cooling, further interest rate increases are still necessary. Chicago Fed President Austan Goolsbee said that the U.S. economy may achieve a soft landing, but inflation risks still tend to rise, and the Fed should be 100% committed to returning the inflation rate to 2%. It is worth noting that rising interest rates in the United States will increase the opportunity cost of investing in zero-yielding assets, which means that the outlook for gold prices is not optimistic.
Next up, the U.S. second-quarter gross domestic product (gross domestic product) annual rate will be released on Thursday. The closely watched event this week will be Friday’s release of the core personal consumption expenditures (PCE) price index, the Fed’s preferred measure of consumer inflation. The PCE price index is expected to fall to an annual rate of 3.9% from 4.2%. Market participants will take cues from these data and seek clarity on gold price direction.
