Gold recorded its biggest drop since July. Federal Reserve Chairman Kevin Walsh's statement that he wants to fight inflation has strengthened the market's expectations that the Federal Reserve will raise interest rates this year, putting downward pressure on precious metals. This is Walsh's first public speech since taking office as Chairman of the Federal Reserve in May. He reiterated that policymakers want to reduce inflation to the 2% target, saying that the target is firm and will not change. Driven by this remark, the dollar strengthened, and the biggest drop in gold reached 2%. Ole Hanson, head of commodity strategy at Saxo Bank, said: “This speech was highly hawkish and strongly committed to keeping inflation down to 2%. The yield curve shows a flat pattern, which shows that the market approves its anti-inflation stance.” He added, “Gold fell as planned, but it remains to be seen whether this round of decline will be enough to put an end to the bullish logic.”

Gold recorded its biggest drop since July. Federal Reserve Chairman Kevin Walsh's statement that he wants to fight inflation has strengthened the market's expectations that the Federal Reserve will raise interest rates this year, putting downward pressure on precious metals. This is Walsh's first public speech since taking office as Chairman of the Federal Reserve in May. He reiterated that policymakers want to reduce inflation to the 2% target, saying that the target is firm and will not change. Driven by this remark, the dollar strengthened, and the biggest drop in gold reached 2%. Ole Hanson, head of commodity strategy at Saxo Bank, said: “This speech was highly hawkish and strongly committed to keeping inflation down to 2%. The yield curve shows a flat pattern, which shows that the market approves its anti-inflation stance.” He added, “Gold fell as planned, but it remains to be seen whether this round of decline will be enough to put an end to the bullish logic.”