Markets see 80 of 25bps hike in Fed39;s May meeting
Path of least resistance looks higher for gold analyst

April 20 Reuters Gold prices climbed on Thursday as the dollar dipped, lifting bullion from previous session39;s sharp retreat on uncertainty over the U.S. Federal Reserve39;s ratehike path fuelled by hawkish commentary from some policymakers.

Spot gold rose 0.5 to 2,003.17 per ounce by 1034 GMT, after hitting a more than twoweek low of 1969.1 in the previous session. U.S. gold futures rose 0.3 to 2,012.50.

Gold has performed a good recovery bearing in mind the dollar recovery and yet again the path of least resistance looks to be higher, independent analyst Ross Norman said, adding gold in the short term would be driven by the dollar outlook.

The dollar index edged 0.1 lower, making greenbackpriced gold less expensive for holders of other currencies.

Looking ahead, Norman sees weakness in the dollar as the Fed is close to reaching the end of its tightening cycle, which could benefit gold, which yields no interest.

The CME FedWatch tool shows markets pricing in an 80 chance of a 25 basispoint hike in May, while a Reuters poll found that the ratehike would be the final one in 2023, with the Fed holding rates steady for the rest of the year.

Investors are keeping a close on remarks by Fed policymakers on the ratehike path, before the officials enter a blackout period on April 22 ahead of the central bank39;s May 23 meeting.

New York Fed President John…