AJJUBHAI GJ13

$XAU #XAU
Key points
Gold prices slide to $4,000
Volatility continues on both sides
Four-month losing streak to cost 25%
Not gold pulling off one of the most surprising moves.
The safe haven is set to clock a 25% drop over four months.
Gold's Shine Keeps Fading
Gold XAUUSD spent Tuesday morning doing what it's done a lot lately - swinging wildly. Prices briefly slipped toward $4,000 an ounce before bouncing back above $4,040 within minutes.
Zoom out, though, and the trend is hard to ignore. Bullion is on track for a fourth consecutive monthly decline, with June down roughly 11%. That follows March's brutal 13% drop, the worst monthly performance since 2008.
From record highs above $5,400 in March to a roughly 25% slide over four months, the market has gone from "buy every dip" to "where's the floor?" in remarkably quick fashion.
Higher Rates, Lower Gold
The mood dropped further after new Fed Chair Kevin Warsh poured cold water on hopes for interest-rate cuts and instead opened the door to possible rate hikes. That was enough to rattle one of the market's favorite safe havens.
Higher interest rates are generally bad news for gold because the metal doesn't generate income. When bonds and cash start paying more, the opportunity cost of holding gold rises, making yield-bearing assets relatively more attractive.
Markets now expect a couple of Fed rate hikes this year, with futures implying a solid chance of another move as early as September. That has strengthened the dollar while weighing on precious metals.
17 Jobs Data Takes the Wheel
Traders now turn their attention to this week's ADP employment report and the closely watched monthly nonfarm payrolls release on Thursday (Friday's a day off).
Strong labor-market data could reinforce expectations that the Fed has room to keep policy tighter for longer.
The US dollar is heading toward a second straight monthly gain. A stronger greenback typically pressures gold because it makes bullion more expensive for buyers using other currencies.
Gold may still carry its safe-haven reputation, but right now interest rates are stealing the spotlight. Until the outlook for Fed policy changes, the yellow metal may find itself fighting an uphill battle rather than chasing fresh highs. #GOLD_UPDATE