Gold is heading for its fourth consecutive monthly loss, having fallen nearly 25% from its all-time highs.

Gold prices continued their volatility on Tuesday, pressured by expectations that US interest rates will remain high. The precious metal is on track for its fourth consecutive monthly loss, marking one of its sharpest declines in years. Spot gold prices fell to near $4,000 an ounce before quickly rebounding above $4,040 , continuing the extreme volatility that has gripped the market in recent weeks.

Despite this rebound, the overall trend remains bearish, with estimates indicating that gold will record losses of nearly 11% during June , after losing about 13% in March , which was the worst monthly loss for the precious metal since the global financial crisis in 2008. Since recording historic highs exceeding $5,400 per ounce last March, gold has lost about 25% of its value in just four months, in a rapid shift from a strong buying wave to intense selling amid changing expectations for US monetary policy.

The latest pressure came after comments from US Federal Reserve Chairman Kevin Warsh , who downplayed the likelihood of interest rate cuts in the near future and even suggested the possibility of raising them again if economic conditions warrant it. High interest rates are a major negative factor for gold, as the metal does not offer investors a return, making bonds and other fixed-income financial instruments more attractive when interest rates rise.

Markets are currently pricing in the possibility of the Federal Reserve implementing two more interest rate hikes this year , with growing expectations that the first move could be taken during the upcoming September meeting, which has strengthened the US dollar and cast a shadow over precious metal prices.

Investors are now turning their attention to a series of key economic data releases this week, beginning with the ADP private-sector jobs report, followed by the non-farm payrolls report, due to the US market holiday on Friday. Analysts believe strong US labor market data could reinforce investors’ belief that the economy can still withstand tight monetary policy for an extended period, potentially prompting the Federal Reserve to maintain or even raise interest rates.

In contrast, the US dollar continues to make gains for the second month in a row, which increases pressure on gold, as the rise in the US currency increases the cost of buying the precious metal for investors who deal in other currencies.

Despite gold maintaining its position as one of the most prominent safe havens in global markets, the course of US monetary policy remains the most influential factor in its movements during the current stage, which may keep the yellow metal under pressure until clear indications of a change in the Federal Reserve’s direction emerge.