Gold heads for biggest monthly decline since November 2016
Gold headed for the biggest monthly drop in more than four years after the Federal Reserve sped up their expected pace of policy tightening, sending prices tumbling below $1,800 an ounce.
The rise in U.S. stocks to a fresh record and a resurgent dollar have also weighed on the precious metal.
Investors are also assessing new travel restrictions in Europe amid concerns about the coronavirus delta variant, which helped spur a re-think of the reflation trade.
Bullion is stabilising as traders now focus on the timing of when policy makers may start dialing back stimulus, while also evaluating risk sentiment.
US Fed officials meeting in June responded to increasing inflation risks by pulling forward their expected timing and pace of interest-rate increases, from the current near-zero level, and kicking off a discussion of when to taper asset purchases.
Spot gold fell 0.2% to $1,775.52 an ounce at 11:34 a.m. in Singapore. Prices are down 6.9% this month, the most since November 2016. Silver, palladium and platinum all retreated. The Bloomberg Dollar Spot Index is up 1.9% in June, heading for the biggest monthly gain since March 2020.
Bloomberg/Hauwa Abu
