Gold and silver prices fall for a fourth straight day on Wednesday, looking to end with a fifth consecutive monthly loss, as traders anticipate interest rates moving higher for longer while the dollar stays strong following Fed Chairman Jerome Powell's Jackson Hole speech last week.
Other Fed officials including New York Fed President John Williams and Richmond Fed chief Thomas Barkin have since struck a similarly hawkish tone.
Comex gold (XAUUSD:CUR) for December delivery -0.2% to a one-month low $1,731.70/oz, poised for its biggest monthly loss in four years, and December silver (XAGUSD:CUR) -1.6% to $17.985/oz, set for its worst monthly showing since September 2020.
Precious metals equities have posted broad losses in the month of August, including (NEM) -7.2%, (GOLD) -4.3%, (AUY) -6.5%, (RGLD) -12.1%, (AGI) -6%, (IAG) -25.4%, (HMY) -18.5%, (GFI) -11.7%, (AU) -6.6%, (WPM) -9.6%, (AG) -4.9%, (EXK) -19.9%, (PAAS) -25.1%, (SVM) -11%, (FSM) -18.3%, (HL) -10.7%, (CDE) -10.5%.
UBS analyst Giovanni Staunovo expects gold to fall to $1,600/oz by year-end as the Fed's determination to bring down inflation through tighter monetary policy will result in higher U.S. real rates and a stronger dollar.
Wolfpack Capital's Jeff Wright said recently he foresees gold in the $1,600-$1,650 range in early September, as "a restrictive monetary policy is not friendly for gold."