Gold Prices Head for Worst Quarterly Loss in 13 Years as Inflation Fears Weigh on Market

SEATTLE (Scrap Monster): Gold prices are on course to post their weakest quarterly performance in 13 years, as investor sentiments continue to remain under pressure, mainly on account of inflation concerns and ongoing geopolitical tensions.

Spot gold is trading slightly above $4,000 per ounce, after falling around 15% during the past three months. On a year-to-date basis, the precious metal has declined 7.5%, erasing all of its gains recorded earlier in 2026. The prices slipped below the $4,000 mark for the first time since early November, for a brief period during recent trading.

The current decline marks gold's first quarterly loss since 2024 and its sharpest three-month drop since the second quarter of 2013.

Gold has experienced significant volatility this year. Prices surged to a record high of nearly $5,600 per ounce in January before witnessing sharp correction. The dip in prices accelerated as the conflict between the United States and Iran expanded into a wider regional crisis.

According to analysts, higher borrowing costs are likely to reduce the appeal of non-yielding assets such as gold. Market participants are now closely monitoring the stance by the U.S. Federal Reserve. The market anticipates another rate hike later this year.

Experts also note that gold must recover above $4,100 per ounce before confidence in a short-term price recovery can strengthen.