Major banks are revising their gold price forecasts downward following indications that Federal Reserve official Kevin Warsh may support interest rate hikes. Warsh’s potential shift in monetary policy is exerting downward pressure on gold prices, traditionally seen as a non-yielding asset that benefits from low interest rates. Rising interest rates typically strengthen the dollar, making gold more expensive for international buyers. Several financial institutions are now adjusting their projections, anticipating a less favorable environment for gold investment. The market is reacting to the increased possibility of tighter monetary policy in the United States. This adjustment reflects a broader reassessment of gold’s role as a safe-haven asset in the current economic climate. Analysts suggest investors are factoring in the potential for a stronger dollar and reduced inflation risk.