World gold price 7-month low

Compared to late January peak, world gold price lost nearly 1,600 USD per ounce, down below 4,000 USD.

At close of June 24 session, world gold price spot fell 111 USD to 3,998 USD per ounce. During session, price hit 3,959 USD at one point - lowest since November 2025. First time since late last year gold fell below key 4,000 USD mark.

This morning, precious metal stayed near this mark. Market pressured by rising USD and growing investor expectations of US rate hike.

World gold price lost 4,000 USD per ounce mark. Chart: Kitco

13-month high USD made gold expensive for buyers using other currencies. Meanwhile, hawkish statements from US Federal Reserve (Fed) last week made investors increase bets on rate hikes this year, due to inflation fears from long Middle East conflict.

Market forecasts Fed rate hike as early as September, pressuring precious metal. "Gold support now below 3,900 USD, central banks still buying. I think correction will last because gold not attractive now," Tai Wong, independent precious metals investor in US, said.

Gold tends to fall when interest rates rise, as asset pays no interest. Compared to late January peak of 5,594 USD, price now down nearly 1,600 USD.

Analysts at ING Bank (Netherlands) lowered gold price forecasts for this year, to average 4,300 USD in Q3 and 4,600 USD in Q4. Previous forecasts were 4,850 USD and 5,000 USD.

On June 25, US releases Personal Consumption Expenditures (PCE) index - Fed's preferred inflation gauge. Lukman Otunuga, analyst at FXTM, said if Fed officials make more hawkish comments, or economic data backs rate hike forecasts, gold price will face more pressure.

Besides gold, silver also hit 56.4 USD per ounce at one point - lowest since November 2025. Standard Chartered Bank noted silver price affected in short term by outflows from silver ETPs. However, market remains undersupplied, so price could recover in coming months.