Gold prices slipped 0.2% to $4,007.78 an ounce in early Asian trade as the dollar strengthened following the Federal Reserve's latest policy meeting. The upward revision of the Fed's rate path has reinforced expectations of tighter monetary policy, weighing on the precious metal's appeal.

Maybank analysts attribute the decline to a hawkish repricing in the dollar, noting that Fed chairman Kevin Warsh's improved credibility at his press conference has helped restore confidence in U.S. monetary policy. This shift has prompted investors to unwind the debasement trade that previously supported gold prices.

The analysts argue gold needs to retreat to $3,600 an ounce before the metal becomes attractive for further buying. At current levels near $4,000, the risk-reward setup remains unappealing despite the recent downward momentum.

With real yields rising and the dollar at multi-month highs, gold faces continued headwinds in the near term as investors prioritize yield-generating assets over traditional hedges.