Gold is heading for its worst quarter since 2013, down more than 11% in June alone, after the Federal Reserve signaled a more aggressive rate path. At its June meeting, the Fed under Chair Kevin Warsh held rates steady at 3.50% to 3.75% but projections showed nine of 18 policymakers penciling in at least one more hike this year, lifting the implied year-end rate to roughly 3.8%. The dollar rallied and spot gold broke below $4,000 for the first time since November, sinking to about $3,942 before a modest bounce. The metal has now fallen 28% from its late-January record near $5,600, and major banks including Goldman Sachs and OCBC have slashed their price targets. Investors are now selling into strength rather than buying dips, with all eyes on Warsh’s upcoming speech and the June jobs report for the next direction.
Goldman Sachs Group IncGoldman Sachs slashed its gold price target, reflecting bearish outlook on the metal.
OCBC slashed its gold price target, reflecting bearish outlook on the metal.