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

Odaily Planet Daily News Gold prices are declining, on track for their largest monthly drop since October 2008. On a quarterly basis, gold is also set to record its first quarterly decline since 2024, with the drop being the steepest 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 that the current combination of high inflation, high interest rate expectations, and a strong dollar has suppressed all the factors that usually support gold prices. Christopher Wong, a precious metals strategist at OCBC Bank, pointed out that gold bulls need to see at least one turning point—falling real yields, a weaker dollar, or a significant waning of the market's hawkish expectations for the Fed. Until then, any rebound in gold prices is unlikely to be sustainable, and is more likely to fluctuate and consolidate repeatedly below the previous highs. (Jinshi)