Optimistic expectations of interest rate cuts + Middle East risks drive gold Q3 surge by 13%, marking the best quarterly performance in 8 years
Gold prices rose more than 13% in the third quarter, marking the best quarterly performance since the first quarter of 2016, mainly driven by expectations of Fed rate cuts and tensions in the Middle East. Comex gold futures rose to $2636.10 per ounce, with a year-to-date increase of nearly 30%. In September, gold prices rose by 5.7%, while silver also showed strong performance, rising by 6.6% in the third quarter. According to data from Bank of America, gold has become the second largest reserve asset after the US dollar
According to the VESYNC Financial APP, thanks to the market's optimistic expectations for further interest rate cuts by the Federal Reserve and the boost in safe-haven demand due to the tension in the Middle East, the price of gold rose by over 13% in the third quarter, marking its best quarterly performance since the first quarter of 2016.
At the same time, investors' optimism about the economy is improving. The People's Bank of China announced new stimulus measures last week, and the latest U.S. data shows that the U.S. economy's rebound from the COVID-19 pandemic is stronger than previously expected.
Comex gold futures for the near month rose by 13.2% in the third quarter to $2,636.10 per ounce, marking the fourth consecutive quarterly increase, despite a 0.3% decline in the contract on Monday. Gold prices have risen by nearly 30% so far this year.
Gold prices rose by 5.7% in September, marking the largest monthly increase since March this year.
Comex silver also saw its fourth consecutive quarterly increase, with near-month contracts rising by 6.6% in the third quarter to $31.164 per ounce, despite a 1.1% decline at the close on Monday.
In September, silver rose by 8.4%, marking its best monthly performance since May.
According to data from Bank of America, gold has surpassed the euro to become the second largest reserve asset after the U.S. dollar. Seeking Alpha analyst Dave Kranzler added that gold demand has been boosted by the BRICS/Eastern Hemisphere Alliance.
Kranzler stated, "Gold currently accounts for 16% of global central bank reserves. The U.S. dollar accounts for 58% of global central bank reserves, down from over 70% since 2002."