Gold fell to its weakest level since early November 2025, when uncertainty over the Middle East conflict weighed on the value of the metal.
A selling wave spread to other precious metals. The price of silver fell 1.4% to $57.4, platinum dropped 1.25% to $1,572, and palladium slid 0.45% to $1,216. All four precious metals suffered a monthly loss.
Why does the price of gold continue to fall?
According to market data, gold traded at its lowest during the day at $3,942 in early Asian trading. At the time of writing, the price of gold was about $3,956, down 1.5% during the day.
The latest drop happened amid diplomatic pressure. President Donald Trump claims that Iran requested a meeting after the exchange of recent strikes, and says the meeting will take place on Tuesday in Qatar.
Tehran presents a different view. Iran’s foreign ministry denies that any meeting with the United States is planned. However, it said that its expert delegation is traveling to Doha.
“We are not going to arrange any kind of negotiation meetings with Americans in the near term. And the fact that Americans travel to Qatar has nothing to do with the trip of the Iranian delegation,” Iran’s foreign ministry spokesperson Esmaeil Baghaei said in a statement.
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Gold heading for a fourth consecutive monthly losing streak
At the same time, the gold price is on track for a fourth consecutive month of losses; in June, the decline has amounted to 12.26%. Overall, gold is down about 30% from its January 2026 peak, which was near $5,600.
The January rally reversed in March, when the U.S.-Iran conflict changed rate expectations and increased bets on Fed rate hikes.
Higher interest rates boost real yields and weigh on the value of gold, because gold does not pay interest. The metal’s price fell below the $4,000 level at the end of June and has continued to decline since then.
The head of the U.S. central bank, Kevin Warsh, kept rates unchanged at the first meeting. However, nine of the 18 policymakers expect at least one hike in 2026, which keeps downward pressure on gold.
Big banks have also lowered their gold targets amid a hawkish atmosphere. Goldman Sachs cut its annual forecast to $4,900. Deutsche Bank reduced its forecast for the third quarter to $4,300 and warned that the price could fall to $3,800 if the Fed raises rates three or four times.
The next moves depend on a fragile ceasefire and on central bank rate decisions. These factors play a decisive role in whether gold’s price decline continues in the second half of 2026.
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