Gold slipped below $4,000 an ounce on Wednesday, touching its lowest level in nearly eight months, as stronger-than-expected U.S. jobs data reinforced expectations that the Federal Reserve will raise interest rates later this year. Bullion traded near $3,982.70, according to Trading Economics.
The drop caps a brutal stretch for gold. Prices fell 11% in June alone — a fourth consecutive monthly decline — and are down roughly 14% for the second quarter, the metal's first quarterly loss since 2024 and its steepest quarterly drop since the second quarter of 2013. Gold has now fallen nearly 30% from the record high of $5,595.46 an ounce it hit in January 2026.
What happened
The latest leg lower followed a JOLTS report showing U.S. job openings at a two-year high, beating economist expectations. Combined with core inflation readings that remain well above the Fed's 2% target, the data has pushed markets to price in at least one Fed rate hike this year, with the first move potentially coming as early as September. Stronger economic data has also lifted Treasury yields, making non-yielding gold less attractive relative to coupon-bearing bonds.
New Fed Chair Kevin Warsh added to the pressure on gold by announcing the creation of task forces to evaluate the size and necessity of the Fed's $6.7 trillion balance sheet — a move investors read as setting the stage for further bond sales that Warsh has campaigned for in the past. Gold traders are also watching fragile U.S.-Iran talks underway in Doha, Qatar, though the two sides are not expected to hold direct negotiations, limiting any near-term safe-haven bid for bullion.
Why it matters
Gold's steep quarterly decline marks a sharp reversal from its record-setting run earlier this year and reflects a broader repricing of Fed policy expectations under Warsh. A metal that thrives on falling rates and geopolitical uncertainty is instead being squeezed by a hawkish central bank and a partial cooling of Middle East tensions — the same forces that have helped fuel this year's stock market rally.
Market impact
The sub-$4,000 level is a psychological line that traders had watched closely after gold's parabolic run to record highs earlier this year. A sustained break below it could accelerate outflows from gold-backed exchange-traded funds and further pressure mining stocks, which have already lagged bullion prices on the way down. Silver and other precious metals have moved in tandem, though gold's decline has been the sharpest given its outsized run-up.