Gold faces pressure from the Federal Reserve's hawkish stance, expected to post its largest monthly decline since late 2008

Golden Ten Data reported on June 30 that gold prices have declined and are set to record their largest monthly drop since October 2008. On a quarterly basis, gold will also see its first quarterly drop since 2024, and the largest decline since the second quarter of 2013. Although there are still uncertainties in the Middle East, the market is now more focused on how far the United States will go to control inflation. Marex analyst Edward Meir stated that the current combination of high inflation, expectations of high interest rates, and a strong US dollar have suppressed all the usual reasons that support rising gold prices. OCBC precious metals strategist Christopher Wong pointed out that gold bulls at least need to see a turning point—such as a decline in real yields, a softer US dollar, or a clear fading of the market’s hawkish expectations for the Federal Reserve. Until then, any rebound in gold prices is unlikely to be sustained, and prices are more likely to repeatedly fluctuate and consolidate below previous highs.