Dollar and 10-year Treasury yields rose, after the Federal Reserve reported higher inflation and announced a possible two-fold rate hike in 2023. Accordingly, this led to a decline in gold, as the news made traders sell inflation-hedging assets.

But Fed Chairman Jerome Powell said their 'dot plot' is not really reliable and not a good basis for future changes in interest rates.

Nevertheless, Nicky Shiels, head of metals strategy at MKS PAMP GROUP, said the recent Fed meeting was a turning point for gold and other inflation-hedging assets.

But gold was already having a difficult time growing even before the Fed meeting. In fact, according to Daniel Pavilonis, senior analyst at RJO Futures, the yellow metal may hit higher lows this week, before rolling back in price.

$ 1760 is a good level to enter the market, while solid support levels will be $ 1763 and $ 1740.

In the long term, investors may have to prepare for a lower trading range for gold, possibly around $ 1,700-1,500.

The highlight of this week will be Fed Chairman Jerome Powell's address to

Congress on Tuesday.

Other factors that could affect gold prices are: inflation rate, basic personal consumption expenditures (PCE), final Q1 GDP data, orders for durable goods, weekly jobless claims and home sales.