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Spot gold rebounds from Fed-driven rout; hawkish comments cloud outlook

Gold prices experienced a rebound following a significant drop triggered by the Federal Reserve's hawkish stance on interest rates. Despite the initial recovery, the outlook for gold remains clouded due to ongoing concerns about potential further rate hikes. The Federal Reserve's indication of maintaining higher interest rates for an extended period to combat inflation has led investors to reassess their positions in non-yielding assets like gold. This uncertainty was compounded by comments from Fed officials suggesting that more rate increases might be necessary, which typically strengthens the dollar and inversely affects gold prices. However, some market analysts suggest that gold could still find support from geopolitical tensions and economic uncertainties, although the immediate future might see continued volatility in gold prices as investors weigh these mixed signals.

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