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Gold headed for the biggest monthly drop in more than four years after the Federal Reserve sped up their expected pace of policy tightening, sending prices tumbling below $1 800/oz.

The rise in US stocks to a fresh record and a resurgent dollar have also weighed on the precious metal. Investors are also assessing new travel restrictions in Europe amid concerns about the coronavirus delta variant, which helped spur a re-think of the reflation trade.

Bullion is stabilizing below $1 800/oz as traders now focus on the timing of when policy makers may start dialing back stimulus. Fed officials meeting in June responded to increasing inflation risks by pulling forward their expected timing and pace of interest-rate increases, from the current near-zero level, and kicking off a discussion of when to taper asset purchases.

“Gold is starting to find support here at the $1 775 level,” said John Feeney, business development manager at Sydney-based bullion dealer Guardian Gold Australia. “We are starting to see investors moving back into metals on these lower prices now, as the Fed’s more hawkish shift seems to be priced in.”

Spot gold was little changed at $1 776.76/oz at 9:28 a.m. in Singapore, after dropping 0.2% on Monday. Prices are down 6.8% this month, the most since November 2016. Silver, palladium and platinum steadied. The Bloomberg Dollar Spot Index is up 1.8% in June, heading for the biggest monthly gain since March 2020.