Gold prices fell more than 1% on Tuesday. This movement secured the largest monthly loss for the metal since 2008. Spot gold dropped approximately 12.8% over the month.
A strengthening U.S. dollar and shifting Federal Reserve policy expectations pressured the market. Investors anticipate the central bank will raise interest rates at least once this year to combat inflation.
Higher rates increase the opportunity cost of holding non-yielding bullion. Persistent inflation, driven by energy prices and AI-related costs, has overshadowed gold's safe-haven appeal.
The drop marks gold's fourth consecutive monthly decline. Prices have reached their lowest levels in nearly eight months.