Gold witnessed another downswing during the early North American session and dropped to $1,775 region, key support area eyed in this video or the lowest level since May 5 in the last hour. The US dollar built on the post-FOMC strong positive move and shot to over two-month tops on Thursday. This, in turn, was seen as a key factor that acted as a headwind for dollar-denominated commodities, including gold.

It is worth recalling that the Fed on Wednesday stunned investors and brought forward its projections for the first post-pandemic interest rate hikes into 2023. The Fed also indicated that it will soon work on tapering down the current $120 billion in monthly bond purchases, which further contributed to driving flows away from the non-yielding yellow metal.

The US dollar index jumped from 91.33 to 91.76 after the Asian consolidation, hitting fresh two-month highs. However, the US Treasury yields remain on the defensive, although hold onto the post-FOMC rally, keeping the bearish pressures intact on gold price.

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