Gold Heads for Worst Month Since 2016 on Dollar Strength, Fed
- Morgan Stanley sees metal below $1,700 an ounce in second half
- Nonfarm payrolls on Friday will be a key data point for gold
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Gold headed for the biggest monthly drop in more than four years on the back of gains in the dollar following the Federal Reserve’s hawkish shift.
The metal is trading near the lowest since April after the Fed pulled forward its forecasts for interest rate hikes. A stronger dollar has added much of the pressure, with the currency on course for its best month since March 2020, and investors have trimmed holdings in bullion-backed exchange-traded funds.