Hawkish FOMC pushes gold below $1,300/toz
The gold sell-off has re-accelerated with the hawkish June FOMC pushing
prices to $1,280/toz. This latest move has tracked the sharp decline in US
real rates triggered by the re-pricing of Fed easing policies, in stark contrast
to the April sell-off which had occurred with range-bound US real rates.
Our modeling suggests that the decline in gold prices since early May is
consistent with the higher level of real rates and the steady ETF outflow.