• Gold prices take a hit, dropping below the 20-day EMA, after the Federal Reserve hints at a potential rate hike in July.
• The resurgent US Dollar and soaring Treasury bond yields further tighten the screws on the precious metal’s bullish momentum.
• Despite a unanimous decision for a June pause, officials’ concerns over a tight labor market point to a looming rate increase.
• Market expectations for July rate hikes remained high, with odds at 88.7%, according to the CME FedWatch Tool.

Gold price snaps three days of gains, tumble below the 20-day Exponential Moving Average (EMA), after the US Federal Reserve (Fed) release of June’s monetary policy meeting minutes, which were tilted hawkish, with officials worried about the tightness of the labor market. Although most officials agreed to a June pause, a July rate hike is almost inevitable. At the time of writing, the XAU/USD exchanges hands at $1916.80, down 0.44% after reaching a high of $1934.97

The greenback is staging a comeback, a headwind for Gold. The US Dollar Index (DXY) rises 0.29%, at around 103.370, while US Treasury bond yields are soaring, with the 10-year benchmark note rate at 3.945%, gaining eight and a half basis points (bps). Money market futures speculate the Fed will raise rates in July, with odds of a 25 bps rate hike at 88.7%, as shown by the CME FedWatch Tool