Gold Poised for Largest Monthly Decline Since 2008

Gold prices dropped over 1% on Tuesday, heading towards their largest monthly decline since October 2008. This trend is due to diminishing Middle East uncertainties and increasing expectations for US interest rate hikes to curb high inflation. Spot gold fell 1.5% to $3956.92 per ounce by 02:21 GMT, marking a 12.7% monthly loss and its fourth consecutive monthly decrease. US gold futures for August delivery also declined 1.7% to $3969.30, according to economic reports. The precious metal is poised for its first quarterly decline since early 2024, and its largest since Q2 2013. Regional tensions led to sharp increases in energy prices, sparking inflation fears and reinforcing interest rate hike predictions.