Gold’s Best Quarter Since 2020 Driven by U.S. Monetary Easing and Middle East Tensions

Gold prices experienced a historic rise this quarter, fueled by U.S. monetary policy changes and heightened tensions in the Middle East. After hitting an all-time high of $2,685.42 per ounce on Thursday, gold has risen over 13% for the quarter, marking its best performance since early 2020.

On Monday, gold took a breather, easing 0.9% to $2,634.75 per ounce. 

The surge has been primarily driven by the U.S. Federal Reserve’s half-percentage-point interest rate cut, which increases the appeal of non-yielding bullion. 

Despite a pullback due to profit-taking and a surge in Chinese stocks, analysts believe the upward trend for gold remains strong.

Analysts note that if gold prices retreat, particularly alongside a strengthening yuan, Chinese physical demand could rebound in the fourth quarter. 

Goldman Sachs raised its gold price forecast to $2,900 per ounce from $2,700 per ounce for early 2025.

In the broader precious metals market, silver dipped 1.7% on Monday to $31.08 per ounce but is set for a 6.7% quarterly rise. Platinum shed 2.2% to $977.90, while palladium declined 1.5% to $996.00, with both metals on track for quarterly gains.

For more information, read the full article on Reuters.