Gold Price Decline and Market Context
Spot gold slipped 1.3% to $3,965.51 per ounce by 21:47 ET (01:47 GMT), marking its weakest level since early November and leaving the metal down 12.8% for June – the worst monthly loss recorded since 2008. Gold futures mirrored the drop, falling 1.5% to $3,975.92 per ounce and pushing the market toward an eight‑month low.
The downward pressure stemmed from a stronger US dollar and heightened expectations that the US Federal Reserve will raise interest rates at least once this year. The Fed’s June meeting produced a hawkish tone, with several policymakers publicly calling for a hike, reinforcing market conviction of tighter monetary policy.
Compounding the rate‑hike jitters, a mix of elevated energy prices and disruptions linked to artificial‑intelligence‑driven demand for chips fueled bets that inflation will remain sticky throughout the year. Apple Inc. announced price increases on several devices after higher chip costs, a move echoed by other electronics manufacturers as the AI sector absorbs global semiconductor supply.
Although recent weeks saw a modest decline in energy prices following a US‑Iran peace agreement, uncertainty persisted over the Middle East, especially after a weekend flare‑up in military tensions, keeping inflation expectations elevated.
Higher expected rates raise the opportunity cost of holding non‑yielding assets such as gold, further depressing demand.
Other precious metals also recorded deep monthly losses. Spot silver fell 2% to $57.1090 per ounce and is down 24.2% for the month, while spot platinum dropped 1.3% to $1,563.25 per ounce, reflecting a near 19% decline in June.