Gold price trades close to three-week lows near $1,620. The hawkish tone of the central banks is set to continue pressuring the yellow metal, economists at ANZ Bank report.

US real yields and the US dollar on a strong footing

“Increased prospects of aggressive rate hikes are keeping Treasury yields and the US dollar on a strong footing, leaving more room for downside.”

“While recession fears grow due to rising rates and sticky inflation, we should see some haven flows but not enough to reverse the bearish trend anytime soon.”

“We expect gold to remain under pressure.”