Gold futures fell as hawkish rate repricing lifted yields.

June Gold futures experienced an intraday reversal, pairing early gains to finish lower after rallying to 4,572.40 and subsequently dropping to 4,488.30. This price action comes amid a significant short-term regime shift, as the 30-day correlation between gold and equity futures dropped sharply to -55, even as the 180-day correlation remains positive at +28. This divergence suggests gold is reasserting its safe-haven status against equities under pressure from geopolitical uncertainty. Meanwhile, hawkish shifts in monetary policy expectations are impacting the market, with the CME FedWatch Tool pointing to a 42% probability of a December rate hike. This hawkish repricing pushed the 10-Year Treasury yield above 4.57% and the 30-year yield past 5.1%, increasing the opportunity cost for non-yielding assets like gold and weighing on its role as an inflation hedge.