On Wednesday the U.S. dollar rose to a two-month high and gold eased after hawkish Federal Reserve remarks reinforced expectations of tighter policy. Dollar strength raised the cost of dollar-priced gold for holders of other currencies. Saxo Bank commodities strategist Ole Hansen said gold remains trapped in a narrow $4,300–$4,400 range and that Fed commentary, its effects on U.S. rates, bond yields and the dollar, plus oil moves, are directing short-term flows. Richmond Fed President Barkin sai

On Wednesday the U.S. dollar rose to a two-month high and gold eased after hawkish Federal Reserve remarks reinforced expectations of tighter policy. Dollar strength raised the cost of dollar-priced gold for holders of other currencies. Saxo Bank commodities strategist Ole Hansen said gold remains trapped in a narrow $4,300–$4,400 range and that Fed commentary, its effects on U.S. rates, bond yields and the dollar, plus oil moves, are directing short-term flows. Richmond Fed President Barkin said rate hikes and the prospect of further increases could restrain firms’ inflation expectations and cool price growth without materially depressing activity.