Gold’s rebound has a problem. Here’s what happens next

Gold prices are on track for their worst quarter in over a decade, according to coverage from Reuters and the Financial Times. The decline follows a surge in Federal Reserve rate hike expectations and a strengthening U.S. dollar, which has diminished demand for the precious metal as a safe-haven asset. Analysts note that retail investor enthusiasm, which had driven recent gains, appears to be waning amid broader market uncertainty.

Coverage emphasizes that the Fed’s shifting monetary policy stance—particularly the repricing of interest rate expectations—has overshadowed traditional haven demand for gold. Reuters and the Financial Times highlight the dollar’s role as a key factor, with stronger currency values making gold less attractive to foreign buyers. Investors will watch for Fed communications in the coming weeks, as any signals on rate cuts or pauses could reverse the trend.

Attention will also focus on global risk sentiment, particularly developments in inflation data and central bank policy divergence. If the dollar remains strong or Fed hawkishness persists, gold’s downward trajectory may extend beyond the current quarter.