Gold Near 7-Month Low on Rate Hike Expectations

2026-06-30 12:33 By Joana Ferreira 1 min. read

Gold held at $4,020 an ounce on Tuesday, near its weakest level since November 2025, as a firm dollar and expectations of US interest rate hikes kept pressure on the metal.

Bullion was down 11% for the month, heading for a fourth consecutive monthly decline, and down around 14% this quarter, the first quarterly loss since 2024 and the steepest drop since Q2 2013.

Rising energy prices, driven by the Middle East conflict, have erased expectations of Federal Reserve rate cuts this year, with traders now pricing in a near 65% chance of a September hike.

Although gold is traditionally seen as an inflation hedge, higher interest rates tend to weigh on the non-yielding asset.

Attention now shifts to upcoming US employment data, including nonfarm payrolls, and remarks by Fed Chair Kevin Warsh due Wednesday for clues on monetary policy.

Meanwhile, investors continued to monitor the prospects for renewed US-Iran diplomacy, though Iran dismissed reports of talks in Doha this week as unfounded.



News Stream
Gold Near 7-Month Low on Rate Hike Expectations
Gold held at $4,020 an ounce on Tuesday, near its weakest level since November 2025, as a firm dollar and expectations of US interest rate hikes kept pressure on the metal. Bullion was down 11% for the month, heading for a fourth consecutive monthly decline, and down around 14% this quarter, the first quarterly loss since 2024 and the steepest drop since Q2 2013. Rising energy prices, driven by the Middle East conflict, have erased expectations of Federal Reserve rate cuts this year, with traders now pricing in a near 65% chance of a September hike. Although gold is traditionally seen as an inflation hedge, higher interest rates tend to weigh on the non-yielding asset. Attention now shifts to upcoming US employment data, including nonfarm payrolls, and remarks by Fed Chair Kevin Warsh due Wednesday for clues on monetary policy. Meanwhile, investors continued to monitor the prospects for renewed US-Iran diplomacy, though Iran dismissed reports of talks in Doha this week as unfounded.
2026-06-30
Gold Set for Fourth Straight Monthly Decline
Gold held above $4,000 an ounce in volatile trade on Tuesday, but was still on track for a fourth consecutive monthly decline amid Middle East uncertainties and expectations that the Fed will raise interest rates this year. Markets continue to price in at least one rate hike by the Fed this year, with the first potentially coming as soon as September, while some investors are betting on additional hikes thereafter. The precious metal has declined about 11% this month and roughly 14% this quarter. Investors are now awaiting the latest US monthly employment report for fresh clues on the policy outlook. Meanwhile, US and Iran are scheduled to resume peace talks in Doha, Qatar later today, although prospects for a lasting ceasefire remain unclear. A major sticking point remains after Tehran reiterated its plan to oversee traffic through the Strait of Hormuz even if Oman decides not to take part.
2026-06-30
Gold Steadies Ahead of US-Iran Talks
Gold held above $4,000 an ounce on Tuesday after falling nearly 2% in the previous session, as investors looked ahead to the resumption of US-Iran peace talks in Doha that could help ease inflation concerns. Still, a key obstacle remains after Tehran reaffirmed its intention to oversee traffic through the Strait of Hormuz even if Oman chooses not to participate. Shipping through the strategic waterway slowed over the weekend following renewed clashes that left two vessels damaged, although tanker operators and their crews have shown a willingness to continue transiting the route. Still, gold remained under pressure as markets continued to price in multiple US Federal Reserve interest rate hikes this year, with the first potentially coming in September. The precious metal is on course to lose more than 11% this month and around 14% this quarter, marking its steepest quarterly decline on record.
2026-06-29