Gold Loses Luster: Q2 Witnesses a 3.4% Price Decline

Published on Jun 30, 2023 15:00

Gold futures extended their downtrend, with the yellow metal trading $7.8 lower on the final trading day of Q2, hitting a new low of $1900.60 per ounce the day before.

Gold prices experienced a 3.4% decline or a decrease of $68.3 per ounce during the second quarter. The trading range for gold during this period was broad, ranging from $2085.4 to $1900.60 per ounce. Despite this decrease, the performance in the second quarter of 2023 was relatively better compared to the same period in 2022. In the second quarter of 2022, gold had suffered a larger decline of 7.5% and was priced at $1807 per ounce.

However, in the first half of 2023 gold gained 5% ($91.7 per ounce) at $1917.9 per ounce. This outperformed the 1.1% loss in the first half of 2022 when gold was priced at $1807 per ounce.

To summarize, gold prices in the second quarter of 2023 showed a relatively milder decline compared to the same period in 2022, while the first half of 2023 exhibited notable gains for gold.

The correlation between gold and the dollar can be seen in past price trends, as the dollar index gained 0.8% in Q2 2023, much lower than the 6.5% increase in Q2 2022, which affected gold prices accordingly.

Domestic gold futures for August delivery broke below psychological Rs 58000 and hit fresh low of Rs 57792 per 10 grams. In Q2 the metal has lost more than 3%, however in the first half (H1) it has gained 5.1%.