Gold futures fell for a fourth straight session Thursday, sending prices to their lowest finish since early February and wrapping up the metal’s worst quarterly performance since Q1 2021.
Comex gold (XAUUSD:CUR) for August delivery closed -0.6% to $1,807.30/oz, down 2.2% for the month and 7.5% for the quarter, as the hawkish tone from global central banks dimmed the metal’s appeal.
Meanwhile, the dollar index maintained its lofty standing near a 20-year peak and closed its best quarter in more than seven years, making gold more expensive for overseas buyers.
Also, according to MarketWatch, September silver (XAGUSD:CUR) ended -1.9% to $20.352/oz, down 6.2% for the month and 19% for the quarter; October platinum finished -1.6% to $895.30/oz, losing 7.5% in June; and September palladium (XPDUSD:CUR) settled -1.6% to $1,916.10/oz, down 4.5% for the month.
ETFs: (NYSEARCA:GLD), (GDX), (NYSEARCA:IAU), (NUGT), (PHYS), (SIL), (SLV), (SIVR), (PALL), (SPPP), (PPLT), (PLTM), (PGM)
“Gold is ending lower this quarter due to the tighter Federal Reserve policy suggestions,” Kitco senior analyst Jim Wyckoff told Reuters. “Also, there’s a good chance that recession worries will bring down demand across commodities.”
“If you’re talking recession, it means less automotive production and industrial activity, [which] is hurting palladium,” said Bart Melek, head of commodity strategies at TD Securities.
Melek also said he sees gold continuing to weaken as algorithmic traders such as commodity trading advisors ramp up bets against the metal.
As recently as three weeks ago, gold settled above $1,875, marking the highest settlement for the most-active gold contract since May 5.