Investors are piling out of gold as the stock market soars and rate rises in the US and UK look more likely.
Some £3.4bn was pulled out of gold, silver and platinum exchange-traded funds in the second quarter of the year, according to data from IHS Markit – the largest outflows on record.
ETF Securities reported $160m (£124m) of outflows from gold over the past week alone after hawkish comments from the Bank of England and European Central Bank. It has seen gold outflows hit $293m (£227m) over the past month.
Meanwhile, BullionVault has seen a third consecutive month of outflows from the asset. BullionVault said 8.4 per cent fewer people were buying gold in June compared with the previous month.
The price of the yellow metal has fallen from $1,253 (£970) to $1,224 (£948) an ounce over the past week, and is down from $1,346 (£1,042) a year ago.
The commodity is typically regarded as a safe haven in times of uncertainty and as protection against falling markets.
Ben Yearsley, director at Shore Financial Planning, said: "With inflation rising you would usually expect gold to do well but with last year’s political risk dissipating, many may feel the asset is no longer needed as an insurance policy."
Other precious metals have also suffered as investors remain risk-on. The price of silver has slipped to $16 (£12) an ounce, from $17.50 (£13.55) a year ago, while platinum is down from $1,105 (£855) to $908 (£703) over that period.
Mr Yearsley added: "The Federal Reserve has been raising interest rates and more hikes are expected this year. If the dollar strengthens as a result then gold could weaken further, so investors selling now could be getting ahead of the curve."
Meanwhile industrial metals, such as copper, saw an uptick in investor interest after strong manufacturing data and increased export demand.