However, the hikes are unlikely to beat inflation, said Ned Naylor-Leyland, fund manager at Old Mutual Gold and Silver Fund.
"Right now, people are expecting, for some reason, more rate hikes than inflation even though (Fed Chair Janet) Yellen has explicitly said that the pace of rate hikes will undershoot inflation," he told CNBC's "Squawk Box".
"So what the central banks are telling is that you are continuing to lose purchasing power holding cash, which is good for gold, but the market has decided otherwise short term and is running away with this idea that you are going to accumulate purchasing power holding cash," he added.
On Thursday, gold hit its lowest level since February. Spot gold was flat on Friday morning around $1,174 an ounce in Asia after hitting a 10-month low of $1,160.38 an ounce in the previous session.