ING’s Warren Patterson and Ewa Manthey note Gold prices are retreating as investors reassess US monetary policy after data showing still persistent inflation risks. They say Gold has fallen sharply from record highs, erasing year-to-date gains, and expect near-term direction to hinge on US data, Treasury yields, Federal Reserve expectations and Middle East developments.

Retreat from records tied to Fed path

"Gold prices continued to retreat, extending recent losses as investors reassessed the outlook for US monetary policy."

"The precious metal initially pared losses after softer-than-expected core inflation figures but remained under pressure as Treasury yields firmed."

"Gold has retreated sharply from recent record highs, wiping out all year-to-date gains."

"While geopolitical uncertainty and central bank buying continue to offer longer-term support, near-term price direction is likely to remain closely tied to US economic data, Treasury yields and expectations for Federal Reserve policy."

"Markets will continue to focus on incoming US economic data and any shifts in Fed expectations."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)