Gold skirmishes near $4,000 as it heads for worst quarter in 13 years
Gold prices are hovering near the $4,000 level but are on track for their worst quarterly performance in 13 years, as a strong dollar and rising real yields weigh on the precious metal.
Gold prices are locked in a skirmish near the psychologically important $4,000 level, but the precious metal is on pace for its worst quarterly performance in 13 years. The tug-of-war reflects conflicting forces: a strong dollar and rising real yields have weighed on gold, while geopolitical uncertainty and central bank buying have provided support.
The current quarter has seen gold retreat from its all-time highs as the Federal Reserve maintains a hawkish stance, pushing real yields higher and strengthening the dollar. Gold, which pays no yield, becomes less attractive when real yields rise. Additionally, a stronger dollar makes gold more expensive for foreign buyers, dampening demand. However, the metal has found a floor near $4,000, with buyers stepping in on dips. Live gold prices and charts on NowPrice show the market reacting to each shift in rate expectations and currency moves.
Traders should watch upcoming US economic data, particularly inflation readings and employment figures, which could influence the Fed's policy path. A break below $4,000 could accelerate losses, while a sustained move above that level may signal a reversal. Also monitor central bank gold purchases, which have been a key source of demand. The calendar may offer some seasonal support, as gold often rallies in the latter part of the year.