Gold records its biggest monthly collapse in 18 years

Gold prices fell by more than 1% on Tuesday, heading towards their biggest monthly decline since October 2008, driven by rising expectations of a US interest rate hike to combat inflation.

Spot gold fell 1.5% to $3,956.92 an ounce, marking a sharp monthly loss of 12.7%, its fourth consecutive monthly decline. Meanwhile, US gold futures for August delivery fell 1.7% to settle at $3,969.30.

The precious metal is also on track for its first quarterly loss since 2024 and its largest quarterly decline since the second quarter of 2013, due to pressure from a strong dollar and high global inflation rates.

As for other precious metals, silver followed the downward trend, declining by 2% to $57.13 per ounce. Platinum also fell by 1.1% to $1,557.21, and palladium dropped by 0.4% to settle at $1,208.17.

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