Gold is under pressure from the Fed's hawkish stance, on track for its biggest monthly drop since late 2008

Odaily News: Gold prices are sliding, 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 biggest 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 stated that the three major factors currently—high inflation, high interest rate expectations, and a strong US dollar—are suppressing all the usual bullish drivers for gold prices. OCBC Bank's precious metals strategist Christopher Wong pointed out that gold bulls need to see at least one turning point: falling real yields, a weaker dollar, or a clear fading of the market's hawkish expectations for the Fed. Until then, any rebound in gold prices is unlikely to be sustainable, and prices are more likely to undergo repeated consolidation below previous highs. (Jin Shi)