Gold Tumbles as Powell’s Inflation Concerns Dash Easing Bets

Group 1 - Gold prices have declined for six consecutive days, marking the longest losing streak since late 2024, primarily due to comments from Federal Reserve Chair Jerome Powell regarding higher energy prices pushing up overall inflation [1] - The Federal Reserve left interest rates unchanged but indicated a forecast for one rate cut this year, acknowledging increased uncertainty due to the ongoing conflict in the Middle East [2] - The increase in energy prices and a hotter-than-expected inflation report have led to speculation that the Fed will refrain from cutting interest rates this year, causing gold to tumble by as much as 3.4% [5] Group 2 - The recent decline in gold prices is attributed to a broader market repositioning, with oil reacting to supply risks and gold experiencing profit-taking alongside a stronger dollar and real yields [6] - Despite recent declines, gold prices are still up more than 10% year-to-date, supported by geopolitical risks and concerns regarding the Fed's independence [7]