Gold fell after Fed Chairman Jerome Powell said he would take a more aggressive stance to stop inflation.
Spot gold fell 0.3 percent in Asian markets after Powell announced that a half-point interest rate increase is on the agenda for the meeting in May. Investors began pricing in the possibility of a half-point rise in the next three meetings.
However, economists assessed that the demand for safe assets would continue to support spot gold.
Despite the negative environment created by the rising bond yields, factors such as the Ukraine war, inflation, and growth concerns continue to support the demand for safe assets, especially gold.