After Thursday's US inflation print, bond traders trimmed bets on Fed hikes this
year; the chance of a rate increase next month fell to about one-third. A
tightening monetary-policy trend remains a headwind for gold, making it less
attractive than yield-bearing assets such as Treasuries. Gold has largely priced
the risk of further Fed tightening but has not priced a sustained
higher-for-longer real-yields regime, said Invesco market strategist David Chao.
