Gold prices tumble 14% amid Fed rate‑hike expectations

Spot gold fell about 14 % in the latest quarter, sliding to roughly $4,015 per troy ounce – the biggest quarterly decline since April 2013. The drop was driven by a stronger U.S. dollar, rising inflation concerns and market expectations that the Federal Reserve will raise its benchmark rate three more times this year.

Analysts note that the Fed’s likely tightening, combined with geopolitical tension in the Middle East, has reduced gold’s appeal as an inflation hedge. Futures for August delivery were largely unchanged around $4,040 per ounce, while silver also slipped more than 10 %.

Investor Robert Kiyosaki publicly admitted he bought gold at the wrong time, but he reiterated his long‑term target of $35,000 per ounce within five years, emphasizing that markets move in cycles.

The price decline reflects broader shifts in global reserve‑asset strategies, as central banks consider diversifying away from the dollar, but the dollar’s dominance and the Fed’s policy stance remain primary factors.