Gold is on course to record its largest quarterly decline since 2013, driven by a persistent hawkish stance from the Federal Reserve and renewed inflation concerns that are eroding demand for non-yielding assets.
The precious metal’s slide reflects a broader repricing of rate expectations, as investors adjust to a policy environment where higher-for-longer interest rates continue to weigh on bullion prices.
The selling pressure has extended across the precious metals complex.
Silver is set for its sharpest monthly loss since September 2011, while platinum faces its worst month since 2008 and its steepest quarterly drop since January 2020.
These synchronized declines underscore the dominance of macroeconomic drivers over industrial or safe-haven demand in the current market regime.
The backdrop for this move includes shifting Federal Reserve policy expectations, which have kept yields elevated and the dollar resilient.