Spot gold prices fell 3.4% during the week ending June 12, 2026. May's Producer Price Index (PPI) recorded its largest annual increase in 3.5 years. This data fueled expectations for a Federal Reserve interest rate hike in December.
Holdings in the SPDR Gold Trust (GLD) dropped 0.3% to 923.89 metric tons. ANZ bank lowered its year-end gold price target by $400 to $5,200. Higher interest rates increase the opportunity cost of holding non-yielding assets.
Physical demand provided some support as dealer discounts in India narrowed. China’s central bank expanded its gold reserves for the 19th consecutive month.