Gold Prices Surge Towards Best Quarterly Performance Since 2016
Gold prices have shown remarkable resilience, remaining close to last week's record high as they head towards their best quarterly performance in over eight years. As of Tuesday, spot gold was priced at $2,655.47 an ounce, reflecting a slight decrease of 0.1% due to a strengthening dollar. However, the precious metal has surged over 14% since the start of the current quarter, marking its best performance since January 2016.
The recent spike in gold prices can be attributed to several factors, including a U.S. interest rate cut and expectations of further reductions in November. In September alone, gold prices increased by 6%, peaking at a record high of $2,685.42 last Thursday. This growth has been fueled by economic stimulus measures in China and ongoing geopolitical tensions in the Middle East, which have heightened investor interest in safe-haven assets like gold.
The U.S. economy has shown strong momentum in the third quarter, with easing inflationary pressures reinforcing expectations for another significant interest rate cut at the Federal Reserve’s upcoming meeting. In such low interest rate environments, non-yielding gold becomes a preferred investment choice for many investors, especially amid geopolitical uncertainty.
Performance of Other Precious Metals
In addition to gold, other precious metals have also experienced notable price movements. Spot silver, which recently reached a 12-year high, fell by 0.39% to $31.50 an ounce but is still on track for an 8% rise by the end of the current quarter. Platinum prices dipped by 0.9% to $991.28, while palladium increased by 0.8% to $1,019.25. The fluctuations in these metals reflect broader market trends and investor sentiment influenced by economic and geopolitical factors.
