Overview
- Global spot gold fell below $4,000 per ounce as the metal closed the second quarter with its steepest losses since 2013, wiping roughly 14% off prices in Q2 and nearly 30% from January peaks.
- The main drivers are stronger US economic data and Fed signals that have raised expectations for higher interest rates, which lifted Treasury yields and made interest‑bearing assets more attractive than gold.
- Investors pulled money from gold products, with World Gold Council and market data showing sustained ETF outflows in May and late June as capital rotated into higher‑return sectors such as technology.
- In India households monetised holdings, selling an estimated near 50 tonnes of old jewellery in April–June while organised recyclers reported sharply higher collections, a trend amplified by a May customs‑duty hike and official appeals to delay purchases.
- Local markets have tracked the international fall, for example large per‑tola drops in Pakistan, and analysts warn that failure of technical support near $3,900 could open the way to lower levels while upcoming US macro prints and Fed remarks are the key near‑term catalysts.