Gold Hits Low

Gold Falls to Eight-Month Low, Posts Sharp June Loss as Rate Hike Fears Intensify

Gold prices dropped to their lowest level in eight months on Tuesday, heading for a fourth consecutive monthly decline as persistent inflation concerns and expectations of higher U.S. interest rates continued to weigh on the precious metal.

Spot gold fell 1.3% to $3,965.51 per ounce as of 08:47 WIB, while gold futures declined 1.5% to $3,975.92 per ounce. Spot prices reached their weakest level since early November.

For June, spot gold has plunged 12.8%, marking its worst monthly performance since 2008.

The decline was driven by a stronger U.S. dollar and growing confidence that the Federal Reserve will raise interest rates at least once more this year. Market expectations strengthened after the central bank adopted a more hawkish tone during its June policy meeting, with several policymakers signaling support for additional rate hikes.

Rising energy prices, combined with supply disruptions linked to the rapid expansion of artificial intelligence (AI), have fueled concerns that inflation could remain stubbornly high throughout the year. As a result, investors increasingly expect the Fed to maintain tighter monetary policy.

Although energy prices eased in recent weeks following the U.S.-Iran peace agreement, uncertainty surrounding the Middle East remains elevated after renewed military tensions over the weekend.

Inflation concerns related to AI intensified after Apple Inc. increased prices on several of its devices last week due to higher semiconductor costs. The move followed similar price increases by other electronics manufacturers as the booming AI industry continues to absorb a significant share of the global chip supply.

Persistent inflation expectations have reinforced forecasts for higher interest rates, putting additional pressure on gold and other non-yielding assets. Higher borrowing costs increase the opportunity cost of holding bullion, making it less attractive compared to interest-bearing investments.

Silver and Platinum Also Post Heavy Monthly Losses

Other precious metals also extended their declines on Tuesday, ending June with substantial losses.

Spot silver fell 2.0% to $57.1090 per ounce, bringing its monthly decline to 24.2%. Meanwhile, spot platinum slipped 1.3% to $1,563.25 per ounce, finishing the month down nearly 19%.

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Gold Prices Decline

Gold Prices Fall on Monday Morning Following US-Iran Military Exchange in the Persian Gulf

Gold prices declined during Monday morning trading (June 29) after renewed military tensions between the United States and Iran in the Persian Gulf unsettled global financial markets.

According to Bloomberg, as of 07:23 WIB, August 2026 gold futures on the Commodity Exchange were trading at US$4,074.20 per troy ounce, down 0.54% from last weekend's closing price of US$4,096.30 per troy ounce.

The decline came after the United States and Iran exchanged military strikes in the Persian Gulf, raising concerns over regional stability and temporarily overshadowing the ceasefire that had previously helped energy prices retreat to pre-conflict levels.

However, according to an Axios report, both Washington and Tehran have since agreed to halt further attacks and resume diplomatic negotiations in Doha on Tuesday, offering renewed hopes for de-escalation in the Middle East.

The latest geopolitical developments followed the release of U.S. inflation data, which remained elevated but largely met market expectations, reducing the likelihood of immediate surprises from the Federal Reserve.

Despite ongoing geopolitical uncertainty, gold prices have fallen by approximately 23% since the United States and Israel launched military operations against Iran in late February, reflecting changing investor sentiment and shifting market expectations.

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Gold Prices Decline

Gold Prices Slip Friday Morning but Hold Above the US$4,000 Per Ounce Mark

Gold prices edged lower during Friday morning trading (June 26, 2026), but continued to trade above the key psychological level of US$4,000 per troy ounce. As of 7:41 a.m. WIB, August 2026 gold futures on the Commodity Exchange were priced at US$4,029.60 per troy ounce, down 0.44% from the previous trading session.

Despite the decline, gold remained relatively resilient around the US$4,000 level after the latest U.S. inflation data eased expectations of additional interest rate hikes.

According to Bloomberg, U.S. inflation increased by less than 0.4% in May 2026, reducing immediate inflation concerns and limiting support for gold prices. However, the precious metal is still expected to post a weekly loss as investors reassess the outlook for monetary policy.

"Gold is facing a more challenging combination of aggressive Federal Reserve repricing, higher real yields, and technical pressure after breaking above the psychological US$4,000 level," said Christopher Wong, a strategist at OCBC, as quoted by Bloomberg.

He added that these factors make the recent gold rally increasingly vulnerable to short-term downside pressure, despite prices remaining above the significant US$4,000 threshold.

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