Gold Retreats Below $2,320 as Fed Maintains Hawkish Stance

Gold prices have declined 0.8% to $2,318 per ounce as Federal Reserve officials maintain their hawkish rhetoric despite easing inflation pressures. The precious metal faced additional headwinds from a stronger US Dollar Index, which climbed 0.3% to 106.45. Middle East tensions between Iran and Israel provided limited support, with safe-haven demand offset by expectations of prolonged higher US interest rates. EUR/USD weakened to 1.0785 (-0.2%) as the dollar strengthened across the board. Fed Governor Bowman reiterated the need for restrictive monetary policy, dampening hopes for rate cuts in 2024. Technical analysis shows gold breaking below the key support at $2,325, opening the path toward $2,300. The metal's inverse correlation with real yields remains intact, with the 10-year Treasury yield holding firm at 4.45%. Traders are monitoring upcoming US economic data for further directional cues.