Gold fell to its weakest level since early November 2025 on Tuesday, as uncertainity of the Middle East war weighed on the metal.
The selloff spread across precious metals. 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 faced monthly losses.
Why Gold Price Keeps Falling
According to market data, the bullion hit an intraday low of $3,942 during early Asian trading hours. At press time, gold was trading near $3,956, down 1.5% on the day.
The latest slide comes amid diplomatic pressure. President Donald Trump claims Iran asked for a meeting after the recent exchange of strikes, and he says the meeting will happen in Qatar on Tuesday.
Tehran tells a different story. Iran’s Foreign Ministry denies that any meeting with the US is scheduled. However, it said its expert delegation is heading to Doha.
“We will not have any negotiation meetings at any level with the American side in the coming days. And the fact that American representatives are travelling to Qatar has nothing to do with the Iranian delegation’s trip,” Esmaeil Baghaei, the spokesperson for the Iranian Foreign Ministry, said.
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Gold Heads for Fourth Straight Monthly Loss
Meanwhile, gold is on track for a fourth consecutive monthly decline, down 12.26% in June. Overall, gold has dropped roughly 30% from its January 2026 peak near $5,600.
The January surge to record highs reversed in March once the US-Iran conflict reshaped rate expectations and lifted bets on Fed hikes.
Higher rates lift real yields and weigh on gold, which pays no interest. The metal made its first move below $4,000 in late June and has kept sliding since.
Federal Reserve Chair Kevin Warsh held rates steady at his first meeting. Yet nine of 18 policymakers expect at least one increase in 2026, which will keep downward pressure on bullion.
Major banks have also cut their gold targets amid the hawkish tone. Goldman Sachs lowered its year-end call to $4,900. 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.
The next moves hinge on the fragile ceasefire and Fed rate decisions. Both will shape whether gold extends its slide into the second half of 2026.
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