Gold extended its losing streak in June, recording a fourth consecutive red month as expectations of Fed rate hikes and Middle East uncertainty weighed on prices. Despite this, new data shows that central bank demand remained strong.
The metal fell 11.7% in June after a 1.8% decline in May. Meanwhile, World Gold Council data shows central banks bought a net 41 tonnes of gold in May, led by Poland and China.
Gold Slides as Fed Turns Hawkish
BeInCrypto reported that gold dropped to $3,942 on June 30, its lowest price since early November 2025. The metal lost roughly 16% during the quarter ending June 30, posting its worst quarterly performance since Q2 2013.
Major banks have cut their targets amid rising odds of a rate cut. Goldman Sachs lowered its year-end call to $4,900 per ounce. Deutsche Bank trimmed its third-quarter forecast to $4,300, and warned prices could reach $3,800 if the Fed delivers three to four hikes.
Poland Leads Central Bank Gold Buying as Prices Slide
Official demand tells a different story. The National Bank of Poland added 18 tonnes in May, its fourth straight month of double-digit buying. Poland has accumulated 64 tonnes this year, lifting reserves to 614 tonnes.
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The People’s Bank of China bought 10 tonnes, its 20th consecutive monthly purchase and largest addition since December 2024. China’s reserves now stand near 2,331 tonnes.
The Monetary Authority of Singapore purchased 4 tonnes, its first buy since September 2025. The authority also plans to launch central bank gold vaulting services in October 2026.
Uzbekistan and Kazakhstan added 9 tonnes and 7 tonnes, respectively. In contrast, Turkey and Russia remained net sellers.
Sentiment supports the trend. In the WGC’s 2026 survey, 89% of respondents expect global gold reserves to rise over the next 12 months. 45% expect their own institution’s holdings to grow.
However, the latest figures cover May, before June’s steep selloff. The next monthly report will reveal whether central bank conviction held through gold’s double-digit loss.
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