Gold Pressured by Hawkish Fed Repricing and Stronger Dollar: Deutsche Bank

Deutsche Bank analysts point out that gold prices are under pressure from a hawkish repricing of Federal Reserve expectations and a strengthening US dollar. According to the bank, risk assets broadly sold off following the latest FOMC meeting, with gold declining alongside Bitcoin.

The firm highlights the rise in 2-year Treasury yields as a key factor, which typically weighs on non-yielding assets like gold. The stronger dollar further compounds headwinds for the precious metal, which is priced in USD.

Deutsche Bank's observation comes amid a broader risk-off tone in markets, with the dollar index climbing and bond yields moving higher. The analysis suggests that gold may face continued headwinds if the Fed maintains its hawkish stance.