Gold prices have fallen below $4,000 per ounce, putting the metal on track for its worst quarterly performance in more than a decade. The decline follows a record rally earlier in the year as investors now expect higher US interest rates, making non-yielding assets like gold less attractive, reports the Financial Times.
The drop has also been driven by a stronger US dollar, investor shifts toward assets such as AI stocks and major IPOs, outflows from gold-backed ETFs, and tighter restrictions on retail gold trading in China. Analysts say changing inflation expectations and reduced demand from speculative investors have weakened gold’s momentum, though central bank purchases may help support prices.
