Gold suffers worst quarter in 13 years amid interest rate hike fears
Gold prices fell further on Wednesday after the precious metal capped its worst quarter in 13 years in the three months to the end of June.
Gold futures It started the second half of 2026 on the upside, losing 1.24% in early trading to $3,989.00. spot prices was also lower, falling 0.82% to $3,974.51.
Gold bullion, which rose to an all-time high of $5,586.20 on Jan. 29, has fallen as investors took a negative view on the asset’s prospects for a non-yielding asset in a potentially higher interest rate environment.
About 16% of gold was written off in the three months ending June 30; This was its worst quarter since the second quarter of 2013. Gold has fallen 7.76% year-to-date.
Gold futures.
Despite the decline, gold, traditionally a safe-haven asset in times of turmoil, still plays an important role in investors’ portfolios as traditional correlations break down, according to the Amundi Investment Institute.
A more challenging monetary policy environment – combined with higher public debt trajectories and central banks’ move away from dollar-denominated assets – could help support demand for gold and precious metals in the second half, Amundi said in its mid-year Global Investment Outlook report.
“Investors face a world where the independence of central banks is being tested, inflation is more volatile and concentration risks are increasing,” said Monica Defend, president of the Amundi Investment Institute.
“The best portfolios for this new regime could be based on different scenarios: they need to diversify across currencies, invest in real assets and gold, and explore equity sectors and structural themes with discipline.”
The World Gold Council’s latest annual Central Bank Gold Reserves survey has revealed that more global central banks are set to increase their gold reserves next year.
Silver also fell on Wednesday as the selling spread to other precious metals.
Silver futures It was last seen at $57.49, down 3.34% and spot silver It traded at $57.80 early Wednesday, down 1.31%.
