Gold Plunges 11% in June as Fed Hawkishness Crushes Precious Metals

Precious metals are enduring a brutal selloff in June 2026, with gold on track for its steepest quarterly decline in 13 years. Spot gold dropped 0.2% to $4,008.94 an ounce on Tuesday, after hitting its lowest level since November. Prices are down 11.3% in June alone, and the yellow metal is heading for its first quarterly decline since 2024. The catalyst? Rising expectations that the Federal Reserve will hike interest rates to combat stubbornly high inflation, a scenario that traditionally weighs on non-yielding assets like gold.

Fed Rate Hike Expectations Weigh Heavily

According to the CME FedWatch tool, traders are pricing in a 65% chance of a rate hike in September. This hawkish shift follows persistent U.S. inflation readings well above the Fed's 2% target. Edward Meir, analyst at Marex, noted that markets are uneasy about the lack of progress in the Middle East conflict and see little light at the end of the tunnel. 'The markets are a little uneasy about how stable the memorandum of understanding is and there's pressure on gold because people are not seeing much light at the end of the tunnel,' Meir said.

The broader precious metals complex is also suffering. Spot silver slid 0.8% to $58.2585 an ounce, headed for its worst quarterly decline since the first quarter of 2020. Platinum dropped 0.7% to $1,564.34, while palladium managed a slight gain of 0.2% to $1,215.94.

Peter Schiff Weighs In

Peter Schiff, the well-known gold advocate and longtime Bitcoin critic, did not miss the moment. While he did not provide a direct quote in the sources, Schiff has historically used such selloffs to argue that gold's long-term bull trend remains intact, dismissing pullbacks as profit-taking after extraordinary runs. He often contrasts gold's physical scarcity with what he views as the speculative nature of Bitcoin.

Bitcoin and Strategy's Dilemma

Interestingly, the precious metals rout coincides with a major development in the crypto space. Michael Saylor's Strategy (Nasdaq: MSTR) filed on June 29 to sell up to $1.25 billion worth of Bitcoin, framing it as a 'Bitcoin Monetization Program' to bolster cash reserves and cover dividends. The trigger was Strategy's mNAV falling below 1 for the first time, stalling the capital model that had relied on a premium to net Bitcoin value. This structural retreat from the accumulate-at-all-costs playbook adds a layer of irony, as gold advocates like Schiff often criticize Bitcoin's volatility and lack of intrinsic value.

Outlook: More Pain Ahead?

With the Fed likely to remain hawkish and geopolitical uncertainties persisting, the near-term outlook for precious metals appears challenging. However, some analysts view the pullback as a buying opportunity. The selloff has been sharp, and if inflation remains elevated, gold could regain its safe-haven appeal. Investors will be closely watching ADP employment data and U.S. nonfarm payrolls later this week for further clues on the Fed's next move.

1. Gold is down 11.3% in June 2026, on track for its steepest quarterly decline in 13 years.
2. The Fed is expected to hike rates in September, with a 65% probability according to CME FedWatch.
3. Silver and platinum also suffered significant losses, with silver heading for its worst quarter since Q1 2020.
4. Peter Schiff comments on the selloff, likely viewing it as a temporary setback in a long-term bull market.
5. Strategy's Bitcoin sale plan highlights the contrasting fortunes of gold and crypto assets.