Gold heads for worst quarterly performance in a decade

GOLD fell below $4,000 per ounce on Tuesday, heading for its worst quarterly performance in over a decade, as expectations of higher US interest rates and fading retail enthusiasm weighed on bullion, said the Financial Times.At an earlier price of $3,942.99, this was the metal’s lowest since November, leaving it down nearly 14% for the quarter. Gold struck a record high of nearly $5,595 in January, driven by retail speculation, but has since retreated sharply.The primary pressure stems from the hawkish stance of new Federal Reserve chair Kevin Warsh, whose focus on tackling inflation has hardened expectations of rate rises, said the FT. As a non-yielding asset, gold typically underperforms when borrowing costs rise and interest-bearing instruments become more competitive.Middle East conflict has pushed oil prices higher, reinforcing the inflation and rate-rise narrative. Some investors have also rotated out of gold into AI stocks and chipmakers, or to participate in SpaceX’s record IPO, analysts said.ETF outflows have compounded the selling. June is on track for a second consecutive month of net outflows from gold-backed funds, according to the World Gold Council. Chinese banks ICBC and China Guangfa Bank have also moved to restrict precious metals futures trading for retail clients from next month, though physical gold purchases remain permitted, the newspaper aid.“There isn’t just one catalyst,” said MKS Pamp analyst Nicky Shiels, citing a stronger dollar, ETF outflows, Fed uncertainty and the fading of the debasement trade — the shift from fiat currencies into assets such as gold and bitcoin.Analysts said central bank buying could provide a price floor.The post Gold heads for worst quarterly performance in a decade appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com