Moreover, easing concerns over a post-Brexit environment have convinced some that the Fed has more leeway to tighten monetary policy this year.
The rate hike expectations have also supported a dollar rally, which also pressured commodity prices and diminished demand for gold as an alternative asset. The U.S. Dollar Index has posted three straight weekly gains.
Related: Gold, USD ETFs Diverging on Renewed Fed Rate Concerns
“The chatter about an interest-rate hike is working its way back into the system, and that’s why gold has been down,“ Phil Streible, a senior market strategist at RJO Futures, told Bloomberg. “The dollar also has been taking the steam out of the commodities rally.”
SPDR Gold Shares