Gold fails to capitalize on falling yields amidst US Dollar rebound

• Gold prices see second day of decline, falling to $2,159 after peaking at an all-time high of $2,223.
• The Federal Reserve’s dovish stance on interest rates keeps US yields down, except for US Dollar.
• Odds for Fed rate cut in June remain above 70% via CME FedWatch Tool.

Gold prices drop for the second consecutive day on Friday after hitting an all-time high of $2,223 on Thursday. Renewed demand for the Greenback amid falling US Treasury bond yields surprised traders and weighed on the yellow metal. At the time of writing, XAU/USD trades at $2,159, losing 0.90%.

The Federal Reserve’s March meeting emphasized the need for policymakers to lower interest rates despite the latest two inflation reports suggesting that it´s reaccelerating. This sponsored XAU/USD’s leg up to new all-time highs, but it was short-lived.