New York Federal Reserve President William Dudley, considered a close ally of Chairwoman Janet Yellen, is scheduled to speak at a roundtable with local business heads in New York later today. If Dudley confirms the Federal Reserve will remain hawkish in its stance, gold is likely to fall further as markets anticipate more tightening. Higher interest rates tend to lift the Greenback, putting pressure on the non-yielding safe-haven metal.
Although the Fed hiked rates last week, weaker than expected economic data points have cast doubts over the Central Bank's ability to continue with its gradual monetary policy tightening. In the meantime, the near-term trend remains bearish, with the area between $1245 and $1250 acting as a key support level to monitor. If gold breaks below, it could tumble all the way to $1220 per troy ounce.