Gold heads for worst quarter in more than a decade as retail frenzy fades - Financial Times
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Gold tumbled below $4,000 per troy ounce as it heads for its worst quarterly performance in over a decade, driven by expectations of higher U.S. interest rates and fading enthusiasm among retail investors. The precious metal's collapse from its January record high of $5,595 reflects a shift in market sentiment away from hedging assets toward AI stocks and other yield-bearing investments.
Gold heads for worst quarter in more than a decade as retail frenzy fades
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Gold heads for worst quarter in more than a decade as retail frenzy fades
Expectations of higher interest rates fuelled by Iran war help end bullion’s record rally
!A gloved hand holds a one-kilogram gold bar marked “CHAFNER 1000g FEINGOLD 999.9,” surrounded by gold bars and coins.
*The price of bullion dipped just below $3,943, its lowest level since November
© Bloomberg*
* Gold heads for worst quarter in more than a decade as retail frenzy fades on x (opens in a new window)
* Gold heads for worst quarter in more than a decade as retail frenzy fades on facebook (opens in a new window)
* Gold heads for worst quarter in more than a decade as retail frenzy fades on linkedin (opens in a new window)
* Gold heads for worst quarter in more than a decade as retail frenzy fades on whatsapp (opens in a new window)
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* Gold heads for worst quarter in more than a decade as retail frenzy fades on x (opens in a new window)
* Gold heads for worst quarter in more than a decade as retail frenzy fades on facebook (opens in a new window)
* Gold heads for worst quarter in more than a decade as retail frenzy fades on linkedin (opens in a new window)
* Gold heads for worst quarter in more than a decade as retail frenzy fades on whatsapp (opens in a new window)
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Leslie Hook in London
PublishedJune 30 2026
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The price of gold fell below $4,000 a troy ounce on Tuesday as it headed for its worst quarterly performance in more than a decade, amid expectations of higher interest rates and dwindling enthusiasm among retail investors.
The price of bullion dipped just below $3,943, its lowest level since November, in early trading before recovering slightly, leaving it down nearly 14 per cent over the past three months.
Having rocketed to a record high of nearly $5,595 in January, driven by frenzied speculation among retail traders, gold has been hit hard as the hawkish stance of new US Federal Reserve chair Kevin Warsh boosts expectations of interest rate rises this year.
“The dominant drag for gold is the market realisation that the Fed’s new head is concerned about inflation, he is going to go after it \[with rate rises],” said Tom Price, analyst at Panmure Liberum. “As a result, gold is pulling back.”
As a non-yielding asset, gold typically suffers during periods of high borrowing costs, which make interest-bearing assets, such as Treasuries and other bonds, relatively more attractive.
!Line chart of $ per troy ounce (Comex futures) showing Gold falls back sharply from record high
After two years of a near-continuous rally, gold has been on a rollercoaster this year. As war in the Middle East has driven up oil prices and fuelled expectations of higher inflation and interest rates, bullion prices have dropped, leading many investors to quickly dump their leveraged positions.
Some traders have also sold gold to fund bets on soaring AI stocks and chipmakers, or SpaceX’s record IPO, analysts say.
In recent weeks, outflows from gold-backed exchange traded funds, combined with new restrictions by some Chinese banks on bullion trading by retail investors, have further weighed on the price. June is on track to be the second consecutive month of net outflows from gold ETFs, according to data from trade body the World Gold Council.
“There isn’t just one catalyst,” said Nicky Shiels, analyst at MKS Pamp. “The narrative has moved on to AI and SpaceX . . . and inflation metrics just aren’t as supportive for gold.”
She pointed to a stronger dollar — in which gold is mostly priced — as well as ETF outflows, uncertainty around the Fed and the decline of the so-called “debasement trade” as contributing to bullion’s decline. The “debasement trade” refers to investors moving out of fiat currencies and into assets such as gold or bitcoin.
Chinese banks ICBC and China Guangfa Bank have moved to restrict precious metals futures trading for retail clients from next month, reflecting regulators’ concerns about investors betting on gold and silver. Chinese investors are still able to buy and
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Most Read
+ Putin ties himself to ruling party as war fatigue bites
+ The great wealth transfer rattling Wall Street
+ Magnificent Seven stocks shed $2.3tn in Wall Street tech rotation
+ Barclays buys Canary Wharf HQ for £750mn
+ The young Chinese choosing life in ‘ghost cities’
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+ US Economy
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+ US Politics & Policy
Most Read
+ The great wealth transfer rattling Wall Street
+ Magnificent Seven stocks shed $2.3tn in Wall Street tech rotation
+ America’s stillborn 250th birthday
+ Donald Trump and how strongman leaders fall
+ Elliott’s acolytes: how Paul Singer’s hedge fund became a spinout factory
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+ Companies Home
+ Energy
+ Financials
+ Health
+ Industrials
+ Media
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+ Retail & Consumer
+ Tech Sector
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Most Read
+ The great wealth transfer rattling Wall Street
+ Magnificent Seven stocks shed $2.3tn in Wall Street tech rotation
+ Barclays buys Canary Wharf HQ for £750mn
+ The young Chinese choosing life in ‘ghost cities’
+ EY employee charged with accessing Australian prime minister’s bank details
* Tech
Sections
+ Tech Home
+ Artificial intelligence
+ Semiconductors
+ Cyber Security
+ Social Media
Most Read
+ Magnificent Seven stocks shed $2.3tn in Wall Street tech rotation
+ Heavy corporate AI spenders add staff faster than peers
+ The new AI-based world order
+ What would multilateral ‘AI arms control’ look like?
+ Tech: the UK’s big growth hope
* Markets
Sections
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+ Alphaville
+ Markets Data
+ Private markets
+ Equities
+ Bonds
+ Currencies
+ Commodities
+ Crypto
+ Monetary Policy Radar
+ Wealth Management
+ Moral Money
+ ETF Hub
+ Asset management
Most Read
+ Magnificent Seven stocks shed $2.3tn in Wall Street tech rotation
+ Gold heads for worst quarter in more than a decade as retail frenzy fades
+ Private equity fund investors turn to debt-like deals in downturn
+ Yen weakens to 40-year low
+ The new AI-based world order
* Climate
* Opinion
Sections
+ Opinion Home
+ Columnists
+ The FT View
+ The Big Read
+ Lex
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+ Letters
Most Read
+ America’s stillborn 250th birthday
+ Donald Trump and how strongman leaders fall
+ Is AI an exoskeleton for the mind?
+ Burnham’s radical localism alone won’t fix the UK economy
+ When Groove Armada met regenerative agriculture
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+ It’s not just the super-wealthy using Lombard loans to buy property
+ Zoë de Givenchy’s new tableware is serving Versailles
+ Head to tail: business grapples with 100% fish initiative
+ No fan is an island at Bad Bunny’s electric London stadium show
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Gold
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Gold heads for worst quarter in more than a decade as retail frenzy fades
Expectations of higher interest rates fuelled by Iran war help end bullion’s record rally
!A gloved hand holds a one-kilogram gold bar marked “CHAFNER 1000g FEINGOLD 999.9,” surrounded by gold bars and coins.
*The price of bullion dipped just below $3,943, its lowest level since November
© Bloomberg*
* Gold heads for worst quarter in more than a decade as retail frenzy fades on x (opens in a new window)
* Gold heads for worst quarter in more than a decade as retail frenzy fades on facebook (opens in a new window)
* Gold heads for worst quarter in more than a decade as retail frenzy fades on linkedin (opens in a new window)
* Gold heads for worst quarter in more than a decade as retail frenzy fades on whatsapp (opens in a new window)
*
* Gold heads for worst quarter in more than a decade as retail frenzy fades on x (opens in a new window)
* Gold heads for worst quarter in more than a decade as retail frenzy fades on facebook (opens in a new window)
* Gold heads for worst quarter in more than a decade as retail frenzy fades on linkedin (opens in a new window)
* Gold heads for worst quarter in more than a decade as retail frenzy fades on whatsapp (opens in a new window)
*
Leslie Hook in London
PublishedJune 30 2026
Jump to comments section
Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The price of gold fell below $4,000 a troy ounce on Tuesday as it headed for its worst quarterly performance in more than a decade, amid expectations of higher interest rates and dwindling enthusiasm among retail investors.
The price of bullion dipped just below $3,943, its lowest level since November, in early trading before recovering slightly, leaving it down nearly 14 per cent over the past three months.
Having rocketed to a record high of nearly $5,595 in January, driven by frenzied speculation among retail traders, gold has been hit hard as the hawkish stance of new US Federal Reserve chair Kevin Warsh boosts expectations of interest rate rises this year.
“The dominant drag for gold is the market realisation that the Fed’s new head is concerned about inflation, he is going to go after it \[with rate rises],” said Tom Price, analyst at Panmure Liberum. “As a result, gold is pulling back.”
As a non-yielding asset, gold typically suffers during periods of high borrowing costs, which make interest-bearing assets, such as Treasuries and other bonds, relatively more attractive.
!Line chart of $ per troy ounce (Comex futures) showing Gold falls back sharply from record high
After two years of a near-continuous rally, gold has been on a rollercoaster this year. As war in the Middle East has driven up oil prices and fuelled expectations of higher inflation and interest rates, bullion prices have dropped, leading many investors to quickly dump their leveraged positions.
Some traders have also sold gold to fund bets on soaring AI stocks and chipmakers, or SpaceX’s record IPO, analysts say.
In recent weeks, outflows from gold-backed exchange traded funds, combined with new restrictions by some Chinese banks on bullion trading by retail investors, have further weighed on the price. June is on track to be the second consecutive month of net outflows from gold ETFs, according to data from trade body the World Gold Council.
“There isn’t just one catalyst,” said Nicky Shiels, analyst at MKS Pamp. “The narrative has moved on to AI and SpaceX . . . and inflation metrics just aren’t as supportive for gold.”
She pointed to a stronger dollar — in which gold is mostly priced — as well as ETF outflows, uncertainty around the Fed and the decline of the so-called “debasement trade” as contributing to bullion’s decline. The “debasement trade” refers to investors moving out of fiat currencies and into assets such as gold or bitcoin.
Chinese banks ICBC and China Guangfa Bank have moved to restrict precious metals futures trading for retail clients from next month, reflecting regulators’ concerns about investors betting on gold and silver. Chinese investors are still able to buy and
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Source: Financial Times
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