The gold price is under further pressure today on the back of a potential rate hike from the US Federal reserve this months which analysts agree is a near certainty.

At 7.26pm (GMT) gold was trading at $1227 down from $1231in yesterday’s trading.

Up until last week, investors were divided over a possible rate hike from the Fed but that all changed after comments from Fed president Janet Yellen that a rate hike was imminent this month.

Yellen noted that the US economy was moving forward and inflation was heading towards the central bank’s target rate.

Her voice was also backed up by 2 other board members who called for a tightening of monetary policy.

"The U.S. labour market is tight, inflation is picking up investment is revving up, consumer confidence readings are increasing and both housing and equity valuations are moving higher" noted INTL FCStone analyst Edward Meir."

“All this should be enough to persuade the Fed to make a move should it want to get at least one of its three advertised rate hikes out of the way for this year." he added.

From a technical point of view gold is also looking vulnerable and although it may find limited support from some outside factors, there is a danger of a reversal

“The rising optimism over the Federal Reserve raising U.S. interest rates in March has encouraged sellers to repeatedly attack gold,” said Lukman Otunuga, research analyst at FXTM.

“Although risk aversion from geopolitical tensions in East Asia may provide some support for the zero-yielding metal, prices are looking increasingly pressured on the daily charts.” he added.