Fed rate path effect under

Gold is trying to protect its gains, supported by the weakening US dollar as investors assess expectations for interest rates after two Fed officials reiterated their view that rates should continue to climb.

Spot gold is trading at $192 an ounce. Gram gold, on the other hand, finds buyers at 1242 TL in the markets.

Investors are pricing in further monetary tightening this year as US inflation figures show little sign of cooling off and strong wage increases are outpacing rapidly rising prices in the economy.

Recent hawkish comments from central bank officials have strengthened the view that further tightening is imminent, as Fed Atlanta Chairman Raphael Bostic told CNBC he would prefer to raise rates above 5 percent and keep them there for a while.

Fed St. Louis President James Bullard also said he supports continued rate hikes to counter persistent inflation.

The expectation of further rate hikes in the market is limiting the recent strength of interest-free gold, which traditionally moves in the opposite direction of the dollar.

The precious metal recently started to rise with the expectations that the Fed’s interest rate hike path has come to an end and rose above $1240.