By Gina Lee

Investing.com – Gold was down on Monday morning in Asia, . It is expected that the U.S. Federal Reserve will adopt a more hawkish approach in its monetary policy. This has boosted the dollar, and placed pressure on the yellow gold.

It fell to $1,917.10 at 1:50 AM ET (5:00 AM GMT) – its lowest point since Apr. 7.

The gold price is close to 3%, which theoretically would mark a tipping point. However, the real issue is about yields, SPI Asset Management says. Stephen Innes is the managing partner, according to Reuters.

Investors are already betting on a Fed rate increase of half a percentage point in May 2022. They also expect bigger increases in the months to come.

Although the gold-like currency moves in a inverse fashion to the dollar, it gained some ground Monday. It was near its highest point for two years.

Innes says that gold still retains some intrinsic value even when the economy slows down. This is because banks won’t raise interest rates. “The market is pricing in rates, rates, rates. But what happens if the economy starts tanking very aggressively?” he added.

U.S. Secretary Antony Blinken, and Lloyd Austin, the Defense Secretary, arrived in Kyiv to hold talks with President Volodymyr Zeleskiy. According to an aid, the Ukrainian leader. With the Russian invasion in February 24, the conflict in Ukraine has entered its third month, it is still a war.

Central bank news: The Bank of Japan will announce its policy decision in the latter part of the week, while the European Central Bank will release its economic bulletin Thursday.

Another precious metal, which fell 1.1%, eased 0.4%, to $927.00 and dropped 2.9%, was other precious metals.