Gold set for worst month in more than 17 years as U.S. rate-cut hopes fade - CNBC

Gold is currently experiencing its sharpest monthly decline in over 17 years, signaling a significant shift in market sentiment. This pronounced downturn comes as investor expectations for U.S. interest rate cuts by the Federal Reserve have significantly diminished. The primary driver for this shift is persistent U.S. inflation data, which has led Federal Reserve officials, including Chairman Jay Powell, to maintain a more hawkish stance, dampening hopes for imminent monetary easing. When the prospect of lower interest rates fades, it makes non-yielding assets like gold less attractive compared to interest-bearing alternatives such as Treasury yields, simultaneously strengthening the U.S. dollar which further reduces gold appeal for international buyers.