Gold Slides Into Q2 After Its Worst Quarter Since 2013
Bullion keeps falling as interest rate fears hammer gold through its ugliest quarter in over a decade.
Gold just had its worst quarter since 2013, and Wednesday's session made clear the bleeding isn't over yet. Bullion extended its slide as interest rate fears kept the pressure on, reminding traders that when the Fed talks tough, gold listens — and not in a good way.
Rate anxiety is the core problem here. Higher-for-longer interest rates lift the opportunity cost of holding a non-yielding asset like gold. When you can park cash in Treasuries and clip a real return, the case for gold gets a lot harder to make. That dynamic crushed bullion through the first quarter, and it's still the dominant force heading into Q2.
Read more BoE's Mann: Fewer Rate Hike Bets Are Why She'd Hike More →
The scale of the damage deserves respect. A quarter this bad hasn't shown up since 2013 — the year the Fed's taper tantrum first reminded everyone how fast gold can unwind when rates shift course. History doesn't repeat exactly, but the rhyme here is loud enough to hear across the trading floor.
For retail traders, the key question now is whether this is a washout or the start of a longer grind lower. Capitulation moves can set up sharp bounces, but chasing a falling asset without a clear catalyst is a fast way to lose money. Watch rate expectations. Watch the dollar. Those two dials are running the show for gold right now.
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