By Giulia Petroni
Gold's safe-haven qualities are meant to help it shine during times of geopolitical uncetainty.
Yet the precious metal is on track for a 13% loss in the quarter ending today, marking its biggest three-month percentage decline in 13 years. One of the cuprits? Expectations that U.S. interest rates will go up.
According to the CME FedWatch tool, traders expect three Federal Reserve rate hikes this year and are currently pricing in a more than 60% chance of a September increase.
"Gold is likely to remain under pressure in the near term as easing energy prices, a resilient U.S. dollar, and higher for longer interest rate expectations continue to reduce demand for non-yielding safe haven assets," analysts at MUFG say.
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