Gold under pressure from hawkish Fed stance, set for biggest monthly drop since late 2008

Odaily Gold prices have fallen, on track for their largest monthly decline since October 2008; on a quarterly basis, gold is also 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 noted that the current combination of high inflation, high interest rate expectations, and a strong dollar has overwhelmed the usual catalysts that support gold prices. OCBC Bank precious metals strategist Christopher Wong pointed out that gold bulls need to see at least one turning point—a decline in real yields, a weaker dollar, or a clear dissipation of the market's hawkish expectations for the Fed. Until then, any rebound in gold prices is unlikely to be sustained, and the metal is more likely to undergo repeated consolidation and fluctuation below its previous highs. (Jin Shi)