A record streak leads gold to its best quarter in four years
Among other metals, silver fell 1.3% to $31.22 per ounce but recorded a quarterly gain of 7%.
Gold is at its highest level since 2020 after reaching an all-time high of $2,685.
Gold prices eased on Monday, taking a breather after a historic rally fueled by U.S. monetary easing and rising tensions in the Middle East, putting it on track for its best quarter since 2020.
Spot gold fell 0.7% to $2,639.85 per ounce, while U.S. gold futures dropped 0.2% to $2,661.50.
Gold climbed more than 13% this quarter, its best level since early 2020, after hitting a record high of $2,685.42 on Thursday. The rally was driven by the Federal Reserve’s half-percentage-point rate cut and the conflicts in the Middle East.
Analysts noted that the gold rally was tempered by profit-taking and a rise in Chinese stocks.
When risk appetite increases, investors tend to shy away from gold, though its recent gains have coincided with a rise in equity markets. Lower interest rates make gold, which yields no income, more attractive.
Markets are now looking to upcoming U.S. labor data, including ADP employment and nonfarm payrolls, which could provide further insight into the state of the labor market.
Analysts from Heraeus mentioned that if gold prices retreat, especially alongside a strengthening yuan, Chinese physical demand for gold could rebound in the fourth quarter. Goldman Sachs raised its gold price forecast to $2,900 per ounce from $2,700 per ounce by early 2025.
Among other metals, silver fell 1.3% to $31.22 per ounce but recorded a quarterly gain of 7%.
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