U.S. dollar down 0.4
Markets pricing in Fed 25 bps rate hike in May

April 18 Reuters Gold prices rose on Tuesday, buoyed by a weaker dollar, while investors looked for more clarity on the U.S. Federal Reserve39;s rate hike path ahead.

Spot gold rose 0.4 to 2,002.72 per ounce by 0909 GMT. U.S. gold futures were also up 0.4 to 2,015.40.

Gold39;s near10 yeartodate climb has been largely predicated on its role as a safe haven as markets kept a wary eye over recession and financial instability risks, said Han Tan, chief market analyst at Exinity.

Bids for a fresh record high may be curtailed until there is greater certainty to Fed rate cuts later this year, Tan added.

The dollar, raising expectations of the U.S. central bank hiking rates in May.

This weighed on gold, pushing it to a twoweek low, as a stronger dollar makes gold more expensive for holders of other currencies.

Benchmark yields were near threeweek highs. Gold is considered a hedge against inflation and economic uncertainties, but higher interest rates dim the nonyielding bullion39;s appeal.

The CME FedWatch tool shows that markets are pricing in an 85.4 chance of a 25 basis point hike in May.

With the majority of U.S. data over the past few days pointing to an economic slowdown and a weakening dollar, the background influences remain supportive for gold, said StoneX analyst Rhona O39;Conell in a note.

Focus will now be on comments from Fed officials this week before they enter a blackout period from…