Gold Prices Plunge 12.4% in June, Marking Worst Monthly Loss in 18 Years
Gold prices tumbled more than 1% on Tuesday, putting the precious metal on track for its biggest monthly decline since October 2008, as easing geopolitical tensions in the Middle East shifted investor focus toward rising U.S. interest rate expectations and persistent inflation concerns.
As of 11:45 WIB on Tuesday (June 30, 2026), spot gold fell 1.0% to $3,975.04 per troy ounce. The decline leaves gold down 12.4% for June, marking its fourth consecutive monthly loss and its worst monthly performance in 18 years.
Meanwhile, U.S. gold futures for August 2026 delivery dropped 1.2% to $3,988.60 per troy ounce.
Gold is also on course for its first quarterly decline since 2024 and its steepest quarterly loss since the second quarter of 2013. Earlier surges in energy prices driven by the Iran conflict fueled inflation concerns, reinforcing expectations that the Federal Reserve will continue raising interest rates.
"You have high inflation, expectations for higher interest rates, and a stronger U.S. dollar, and that outweighs all the bullish factors that would normally support a gold rally," said Edward Meir, an analyst at Marex.
Although gold is traditionally viewed as a hedge against inflation, higher interest rates reduce its appeal because the precious metal does not generate interest income.
Markets are currently pricing in three Federal Reserve rate hikes this year, while the CME FedWatch Tool indicates a 64% probability of a rate increase in September.
Investors are now awaiting this week's ADP employment report and the June Nonfarm Payrolls (NFP) data for further clues about the Fed's monetary policy outlook.
The U.S. dollar strengthened and remained on track for its second consecutive monthly gain, making dollar-denominated gold more expensive for holders of other currencies and adding further pressure to bullion prices.
Meanwhile, oil prices are heading for their sharpest quarterly decline since 2020 as investors closely monitor the outcome of Iran-U.S. discussions in Doha, despite Iran stating that no official meeting has been scheduled.
"Gold needs at least one of three conditions to improve: lower real yields, a weaker U.S. dollar, or reduced expectations of a hawkish Federal Reserve. Without these catalysts, any rally is likely to fade, and gold may continue consolidating below its previous highs," said Christopher Wong, Precious Metals Strategist at OCBC.
Other precious metals also traded lower. Spot silver fell 1.6% to $57.35 per ounce, platinum declined 0.5% to $1,566.90 per ounce, while palladium gained 0.5% to $1,219.55 per ounce. Despite the modest rise in palladium, all three metals remain on track to post both monthly and quarterly losses.