Gold falls below $3,990 mark amid rate-hike expectations

June 30, 2026 (MLN): Gold extended losses on Tuesday and head for its steepest monthly slide as fading Middle East tensions shifted market focus toward expectations of further U.S. interest rate hikes aimed at containing inflation.

Currently, spot gold is down 2.1% to $3,986.24 an ounce as of [10:07 am] PST, according to data reported by Mettis Global.

The metal was also on track for its first quarterly decline since 2024 and its sharpest since the June 2013 quarter, with the Iran conflict having pushed energy prices higher and fueled inflation concerns alongside bets on tighter monetary policy, according to CNBC.

Gold typically serves as an inflation hedge, but its appeal diminishes when interest rates rise.

Markets are pricing in three Federal Reserve rate hikes this year, with roughly a 64% probability assigned to a September move, according to the CME FedWatch Tool.

Investors are now turning their attention to this week's June ADP employment report and nonfarm payrolls data for further signals on the Fed's policy direction.

The U.S. dollar was on course for a second straight monthly gain, adding pressure on gold by making it costlier for buyers holding other currencies.

Among other precious metals, spot silver fell 2% to $57.13 per ounce, platinum declined 1.1% to $1,557.21, and palladium eased 0.4% to $1,208.17.

All three were on track for both monthly and quarterly losses.

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