Spot gold is on course to record its largest monthly decline since October 2008, having shed 12.1% so far in June.
The precipitous drop marks what could be the fourth consecutive monthly fall for the precious metal, signaling a sustained shift in market sentiment away from safe-haven assets.
The selling pressure is being driven by a repricing of Federal Reserve policy expectations.
Markets are increasingly pricing in the possibility of US rate hikes, which strengthens the US dollar and increases the opportunity cost of holding non-yielding assets like gold.
This macro dynamic has overridden traditional demand drivers, leading to a broad-based selloff across the precious metals complex.
The decline extends a trend that has seen gold slip to its lowest level in nearly two weeks.