The price of gold has moved higher during early trading. Heng Koon How from UOB noted in a report that, after falling close to $4,000 last week amid growing concerns that the Federal Reserve may need to raise policy rates, gold is currently trading below its key consolidation level of $4,500 per ounce.

UOB's forecast hinges on the outcome of the Fed's June meeting and the messaging conveyed by Chair Kevin Wash. The analyst stated that if Kevin Wash acknowledges escalating inflation risks, gold faces the potential for additional near-term pressure and a risk of falling below the $4,000 per ounce mark.

UOB projects that gold will trade around $4,600 per ounce in the third quarter and approximately $4,800 per ounce in the fourth quarter. Spot gold is up 0.3% at $4,226.02 per ounce, though it has registered a cumulative weekly decline of 1.7%.