Bars of gold are seen at the Krastsvetmet company, one of the world's largest producers of precious metals in Moscow, Russia on January 31, 2023.
Gold hit a two-month low of $1,936.59 during Asian trading hours, and is set to lose 1.7% for the week.
But short-term players expect a deal to be done and "have been selling behind inflation data that suggests a June hike is possible," Wong added.
Traders are now betting the Fed will deliver an 11th straight rate hike in June, which would erode the attraction of zero-interest-bearing gold.
Benchmark 10-year Treasury yields and the dollar index hovered near their highest levels since mid-March, both on track for their third straight weekly gains
Persons:
Gold, Tai Wong, Wong, Phillip Streible
Organizations:
D.C, Federal, Blue, Traders
Locations:
Moscow, Russia, New York, Chicago