Gold sentiment among Western investors fell from May's five-month high last month as global stock markets set new records.
Investors on BullionVault, the biggest online market for physical precious metals, cut their total gold holdings for the third consecutive month in June.
New interest in the safe-haven asset also remained weak. The number of new users in both the US and Eurozone marked the lowest monthly level since gold crashed to a six-year low in December 2015.
"These fresh record highs in the stock market are continuing to depress new interest in gold, because investors tend to buy precious metals as insurance against losses in other assets," said Adrian Ash, director of research at BullionVault.
"While buying gold ahead of stockmarket weakness has proven the wisest course in the past, the lack of a clear direction in gold prices is also making existing investors price sensitive, buying the dips and selling the spikes," he added.
Yesterday gold fell to fresh two-month lows, but prices have been volatile over recent months.
The number of people buying gold in June fell 8.4 per cent from the previous month while the number of net sellers rose 19.3 per cent from May's eight-month low.
BullionVault launched in 2005, and 89 per cent of its users live in North America or western Europe.
Gold prices have recovered somewhat today, rising 0.44 per cent to $1,224.60 per ounce.
"Gold bulls found support in the form of geopolitical risk during Tuesday’s trading session as the metal rebounded from $1,220," said Lukman Otunuga, research analyst at FXTM.
"Although the current market anxiety and flight to safety has the ability to support gold, the sharp $23 depreciation observed on Monday will be difficult for bulls to claw back. Short term bears remain in control with gold at risk of depreciating further if the Greenback continues to stabilise. From a technical standpoint, the yellow metal has turned bearish on the daily charts. Weakness below $1,220 may open a path towards $1,214."