New Delhi, June 26 -- NEW YORK - For three years, central banks in China, Turkey, and Poland bought gold as if the monetary order were being renegotiated. This week, the trade started coming apart.

one is monetary, one is geopolitical, and both arrived in the same week.

The monetary pressure originated with the May personal consumption expenditures reading that pushed US inflation to a three-year high. At 4.1% year-over-year, the PCE index reached levels last seen in April 2023. Federal Reserve Chair Kevin Warsh held the benchmark rate at a range of 3.5% to 3.75% at the June 17 FOMC meeting for the fourth consecutive session, but the projections released alongside the hold were pointed: nine of 18 Federal Open Market Committee members i...