Gold pressured by hawkish Fed stance, on track for biggest monthly drop since late 2008

Odaily Planet Daily News Gold prices are falling, on track for their largest monthly decline since October 2008; on a quarterly basis, gold is set to record its first quarterly drop since 2024, with the largest decline since the second quarter of 2013. Although the situation in the Middle East remains uncertain, the market is now more focused on how far the US will go to control inflation.

Marex analyst Edward Meir said the current combination of high inflation, high interest rate expectations, and a strong dollar has overwhelmed the factors that typically support gold prices. OCBC precious metals strategist Christopher Wong pointed out that gold bulls need to see at least one turning point—a drop in real yields, a weaker dollar, or a clear dissipation of market expectations for a hawkish Fed. Until then, any rebound in gold prices is unlikely to be sustainable, and prices are more likely to consolidate in repeated fluctuations below previous highs. (Jinshi Data)