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

June 30, Jin10 Data — 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 decline 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 U.S. 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 factors that usually support gold prices. Christopher Wong, precious metals strategist at OCBC Bank, pointed out that gold bulls will need to see at least one turning point—a drop in real yields, a weaker dollar, or a clear retreat in market expectations of the Fed's hawkish stance. Until then, any rebound in gold prices is unlikely to be sustained, and the metal is more likely to consolidate repeatedly below its previous highs.
(From Jin10 Data App)