Gold sinks to 6-month low as speculative investors exit

Gold prices fell to a six-month low this week, marking its worst quarterly performance in nearly a decade. The decline is attributed to speculative investors exiting the market, influenced by a confluence of factors including the ongoing conflict in Iran, expectations of interest rate hikes by the U.S. Federal Reserve, and the anticipation of a significant Initial Public Offering (IPO) from SpaceX. The precious metal has seen a steady decrease in value throughout the quarter, with its safe-haven appeal diminishing as geopolitical tensions, while present, have not escalated to a point that would significantly disrupt global markets and necessitate a flight to gold. Furthermore, the prospect of higher interest rates in the United States makes holding non-yielding assets like gold less attractive compared to interest-bearing investments. The potential IPO of SpaceX, a high-profile technology company, is also diverting speculative capital away from traditional assets like gold.