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- Gold prices fell Wednesday after bullion suffered its worst quarter in 13 years.
- The precious metal is down from its January record high after the Iran war sent energy prices higher, reigniting inflation fears and heightening the potential for Fed rate hikes.
- But analysts at Amundi said gold still has a role in portfolios as inflation volatility, debt risks and central bank diversification support demand.
Gold prices fell further on Wednesday, after the precious metal closed its worst quarter in 13 years in three months to the end of June.
Gold futures began the second half of 2026 on the backfoot, sliding 1.24% in early trade to $3,989.00. Spot prices were also lower, falling 0.82% at $3,974.51.
Having spiked at an all-time high of $5,586.20 on Jan. 29, bullion has since plunged as investors turn negative on the non-yielding asset’s prospects in a potentially higher rate environment.
About 16% was wiped off gold in the three-month period ended June 30 — its worst quarter since the second quarter of 2013. Gold has fallen 7.76% year-to-date.
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Gold futures.
Despite the slide, gold — traditionally a safe haven asset in times of turmoil — still has a key role to play in investors’ portfolios as traditional correlations break down, according to Amundi Investment Institute.
In its mid-year Global Investment Outlook, Amundi said the more challenging monetary policy backdrop — coupled with high public debt trajectories and central banks’ diversification away from dollar-based assets — should help support demand for gold and precious metals in the second half.
“Investors face a world in which the independence of central banks is being tested, inflation is more volatile, and concentration risks are growing,” said Monica Defend, head of Amundi Investment Institute.
“The best portfolios for this new regime can withstand different scenarios: they need to be diversified across currencies, invested in real assets and gold, and explore equity sectors and structural themes with discipline.”
The World Gold Council’s recent annual Central Bank Gold Reserves survey found that more global central banks are poised to increase their gold reserves over the next year.
Silver was also lower Wednesday as the sell-off spread to other precious metals.
Silver futures were last seen 3.34% lower at $57.49, and spot silver had shed 1.31% early Wednesday, trading at $57.80.
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