Gold edged higher from a near seven-month low on Tuesday but remained on track for its worst quarterly performance since the second quarter of 2013, as the dollar remained firm amid expectations of US interest rate hikes, reports Reuters.
Spot gold inched up 0.4 per cent at $4,031.29 per ounce, as of 1150 GMT, after touching its lowest level since November 2025 earlier in the session. US gold futures for August delivery lost 0.2 per cent to $4,045.30/oz.
"The failure to sustain gains (for gold) highlights the current fragile sentiment, where traders continue to sell into strength rather than buy into weakness, a notable shift from the behaviour seen over the past few years," said Saxo Bank analyst Ole Hansen.
Bullion was down more than 11 per cent for the month, on track for a fourth straight monthly decline. The precious metal was also poised for its first quarterly loss since 2024 and its biggest quarterly percentage drop since the June quarter of 2013.
"Prices first need to break above $4,100 before it is reasonable to consider that a low may have been established," Hansen added.
Further weighing on bullion was a stronger dollar, set for a second straight monthly gain as markets priced in higher odds of Fed rate hikes.
Higher energy prices fuelled by the war in the Middle East erased market expectations of US rate cuts this year, with traders currently seeing a 65 per cent probability of an increase in September, the CME FedWatch data showed.
Although gold is seen as an inflation hedge, higher interest rates tend to weigh on the non-yielding metal.
Focus is now turning to upcoming US employment data, including the ADP report and nonfarm payrolls, for clues on the US central bank's future rate path.
Gold heads for worst quarter in 13 years
FE Team | Published: June 30, 2026 22:05:39
Gold heads for worst quarter in 13 years
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